A survey has revealed that pub licensees voted overwhelmingly in favour of a campaign to reduce the level of VAT on food and drink from 20% to 5%.
The survey carried out by independent market research agency Cardinal Research, on behalf of the VAT Club Jacques Borel, revealed that 96% of the licensees say the pub and restaurant industry should fight for the reduction, 94% support the campaign by the VAT Club JB and 86% agree that it’s unfair that supermarkets don’t pay VAT on food while pubs have to.
Over 1000 licensees from all over the UK were interviewed for the survey, representing a mix of free house, leased, tenanted, franchised and managed pubs, and included those from corporate companies such as Punch, Enterprise, Star Pubs, Marston’s, Wetherspoon, Greene King, Spirit and Mitchells and Butler.
The survey also stressed that 82% of licensees agree that the supermarket VAT tax break on food helps supermarkets subsidise drinks and that 92% of licensees agree that a VAT tax reduction on food would allow them to reduce prices and attract more customers.
It also showed that 64% of licensees are aware that supermarkets do not pay VAT on their food sales, whilst 36% are unaware of this VAT tax break.
VAT Club JB chairman, Jacques Borel, said: “The findings of this important survey clearly emphasise the fact that licensees across the UK wholeheartedly back the vital campaign to reduce the level of VAT on food and drink in pubs and restaurants.
“It also highlights the fact that individual licensees back the VAT Club JB and believe that if the campaign is successful, it will have a positive effect on their business.
“The clear message to Government and individual MPs of all political parties