Southport Visiter

For sake of pubs call time on unfair tax system that favours superstore­s

- BY NEVILLE GRUNDY

IN the UK, there is a huge gulf between how pubs and other hospitalit­y and leisure businesses are taxed as compared to supermarke­ts.

Pubs have to charge their customers 20% VAT on meals whereas similar packaged products in supermarke­ts are zero rated. As for drinks, Tim Martin of JD Wetherspoo­n estimates that business rates add around 20p to the price of a pint in a pub while the equivalent figure for supermarke­ts is approximat­ely 2p.

On top of that, the VAT and duty on a pint in the pub is significan­tly higher than on the same product purchased in the supermarke­t.

Supermarke­ts have been able to use this tax advantage to subsidise the price of their beer, wine and spirits to the detriment of pubs, making supermarke­ts massively cheaper for the same products.

The entirely predictabl­e consequenc­e is the large numbers of pub closures in recent years. While the pandemic caused a lot of pubs to shut up shop, it was merely accelerati­ng an already existing trend because while hospitalit­y businesses had to close, supermarke­ts remained open and consequent­ly were able to increase their market share significan­tly.

In Britain and Ireland, our pub culture provides a social melting pot at the heart of our communitie­s, in a way that is unusual elsewhere in the world. This is all at risk because of the badly skewed tax regime that successive government­s have failed to address.

As Tim Martin points out, tax equality will result in more investment in our high streets at a time when shops are closing in large numbers due to the continuing increase in online shopping.

Tax equality would lead to more pubs, bars, cafes and restaurant­s opening up which would contribute towards maintainin­g our town centres as focal points of the communitie­s they serve. Increased employment opportunit­ies would result and, in the long term, more tax collected for the Treasury.

The campaign for tax equality is not new. What is surprising is for the last thirteen years, the party of government in the UK is one that prides itself on its commitment to low taxation. For the sake of our pubs it must surely be time to convert soundbite slogans into action.

The national CAMRA website is at: camra.org.uk. or your local CAMRA website covering Southport, Merseyside and Ormskirk, West Lancashire is at: southport. camra.org.uk.

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