The creator of the popular pub chain Wetherspoons has raised concerns about the tax gap between supermarkets and inns, highlighting a significant challenge for the hospitality industry. Meanwhile, Rachel Reeves is set to announce specific support measures.
The Chancellor is expected to introduce a relief package worth around £300 million to aid pubs in adjusting to the end of pandemic-related financial assistance. This relief is likely to focus on alleviating the pressure of high business rates. However, Tim Martin, the chairman of JD Wetherspoon, pointed out that pubs are also facing intense competition from retail giants.
Martin emphasized the need for a fair playing field, urging the Chancellor to address the disparity in taxation between pubs and supermarkets. He highlighted the discrepancy in VAT rates on food and the disparity in business rates, stating that failure to achieve equality could lead to a decline in pubs compared to supermarkets.
This plea coincides with Rachel Reeves acknowledging the challenges faced by pub owners regarding a potential rise in business rates. The Mirror has been actively supporting local pubs through its ongoing campaign, “Your Pub Needs You.”
While pubs are expected to receive special support, other sectors, including hospitality, are calling for similar assistance. Jon Collins, CEO of LIVE, which represents music and entertainment businesses, criticized the unequal treatment, warning of severe financial strain, closures, job losses, and increased ticket prices in affected venues.
Darsh Shah, a partner at advisory firm Blick Rothenberg, proposed extending the relief fund to hotels experiencing substantial tax and operational cost increases. Shah highlighted the significant rise in ratable values for hotels and suggested a support fund similar to that for pubs to ease the financial burden over a three-year period.
The discussions around sector-specific support come as various industries navigate the economic challenges posed by tax disparities and rising operational costs.
