December 8 2013 Latest news:
Wednesday, September 25, 2013
Customers can enjoy lower prices at four pubs on today, during a day of action calling for lower rates of VAT in the hospitality industry.
The New Fairlop Oak in Fencepiece Road, Barkingside, The Great Spoon of Ilford in Cranbrook Road, Ilford, The George in High Street, Wanstead and The Eva Hart in High Road, Chadwell Heath, are all taking part in national Tax Parity Day.
All food and drink prices at the pubs will be reduced by 7.5 per cent for the day to highlight what the hospitality industry sees as an unfair level of VAT on its food and drink, in comparison to supermarkets.
Its businesses are subject to 20pc VAT, compared to supermarkets which benefit from a zero rate.
Karen Catchpole, manager of The New Fairlop Oak, said: “We are keen to highlight the amount customers would save if VAT in pubs was lowered.”
The campaign, which is asking for a permanent 5pc VAT cut, believes a reduction would help the economy in the long term by bringing in more customers.
It is being supported by JD Wetherspoon, Pizza Hut, Heineken, Shepherd Neame and Punch Taverns, and Roadchef.
Wetherspoon chairman Tim Martin said: “A reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector.”
The day of action is backed by Redbridge Chamber of Commerce, which praised the pubs’ “resourcefulness”.
“Any reduction in VAT is likely to act as a stimulus to the economy, especially in the hospitality sector, and is a good idea,” said Geoff Hill, chairman of the chamber of commerce.
“This local project shows resourcefulness of businesses in Redbridge. The chamber applauds this demonstration of enterprise.”
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