Worst year in the history of the pub trade

Abstract

Drinks industry says VAT reduction is now of "utmost urgency" to help pubs as delayed reopening threatens hundreds of businesses. July Stimulus hailed by Government as 'radical and far reaching' and a 'package of scale that can be deployed at speed' must deliver specifically for pubs. Government's decision to further postpone pub re-openings will have dire consequences for already hard-pressed businesses and their employees. Temporary reduction (until 31 December 2020) in VAT rate on on-trade alcohol from 23% to 9% will be of "universal benefit" to all pubs. Measure will allow pubs to recoup Covid-19 expenses and cover some losses due to reduced capacity. Drinks Industry: "It is simply not realistic to keep such an important domestic sector of the economy closed for five months and more and then expect it to reopen without adequate state redress."