One of the South West’s largest pub brands has welcomed VAT cuts announced in the Chancellor’s summer statement – but it said more help may be needed for smaller hostelries.
The cut from 20% to 5% will protect jobs and livelihoods, said Kevin Georgel, chief executive of St Austell Brewery, which operates 179 pubs and hotels throughout Devon, Cornwall and the wider South West.
But small community pubs need more help to survive, said Mr Georgel, and he said that could come in the form of further tax cuts.
He said: “St Austell Brewery has faced considerable losses during the close down period, and it will take some time for us to recover from the impact of Covid-19.
“We welcome the Government’s support for hospitality businesses like ours and its commitment to levelling up the regions.
“However, further support is still required to help smaller community pubs – where revenue is drinks led – and breweries across the country.
“Beer, the UK’s national drink, has been excluded from the VAT cut and eating out scheme. We would urge the Chancellor to reduce beer tax at the alcohol duty review later this year, to protect more jobs and help our industry to bounce back.”
He said that customers will be able to take advantage of the Government’s Eat Out to Help Out initiative in all of its managed pubs, throughout August.
He said: “Our guests will receive a 50% discount – up to £10 per head – on sit-down meals and non-alcoholic drinks, from Monday to Wednesday each week.
“This scheme is particularly welcome for hospitality businesses in the South West region as tourism, and trading throughout the summer season, are of vital importance to us.”
The VAT cut will be in force from from July 15, 2020, to January 12, 2021. The cut applies to food and non-alcoholic drinks as well as accommodation and admission to attractions across the UK. Mr Sunak said the move is to get the sectors moving and to protect jobs.
St Austell Brewery’s managed pubs opened on “Super Saturday”, July 4. Mr Georgel said the reopening had gone smoothly and added: “It’s very encouraging to have received so much positive feedback over the weekend, from those who enjoyed their pub experience and felt reassured by the new measures we’ve put in place.
“We’re happy that we’ve been able to provide peace of mind and a safe, comfortable environment for our loyal customers.
“We’re incredibly proud of our pub teams and tenants across the West Country, who worked so hard behind the scenes last week to get ready to welcome people back. We’d also like to thank all of our guests for supporting us, looking out for one another and respecting the guidelines.”
But he stressed that despite the reopening of venues, business was still at a significantly lower level and recovery could take some time.
He said: “While it’s great to be up and running again - and things got off to a steady start – the reality is that we still face a long road ahead to recovery.
“Our trading across the weekend was significantly lower than last year and is likely to remain this way, until consumer confidence fully returns.
He stressed his call for cut in VAT, beer duty and business rates “until we can get back to a sustainable level of trading”.
“Pubs have been at the very heart of their communities, in good times and bad, for hundreds of years,” he said. “The industry needs longer-term support, to ensure that pubs are protected for future generations.”
