Devizes pubs fight on VAT
2:00pm Saturday 4th February 2012 in Latest News By Lewis Cowen
Devizes brewer Wadworth has joined forces with other family brewing firms to petition the government to reduce the valued added tax (VAT) charged in pubs.
The company, which has its headquarters at Northgate Brewery in Devizes, has contributed to the £240,000 fighting fund set up by the Independent Family Brewers of Britain to finance their campaign.
It says the cost of eating out at pubs has increased by 7.5 per cent, with 20 per cent of people opting to stay at home as the economic downturn continues.
They say the situation has become worse since the government increased the rate of VAT last January.
The brewers pointed to a successful campaign in Germany, Belgium, Sweden and France, where a reduction in the rate of VAT led to the creation of 21,700 jobs.
They estimate a reduction to five per cent would create between 140,000 and 320,000 jobs in the UK hospitality sector.
Paul Sullivan, Wadworth sales and marketing director, said: “We are actively supporting this move as we feel it would be a great opportunity for job creation.”
Paul Wells, chairman of the Family Brewers, said: “Pubs are beleaguered with tax increases and legislation so this campaign is to kickstart some economic growth.”
Charles Bartholomew, chairman of Wadworth, has long campaigned for a reduction in duty on beer to compete with supermarkets, which are able to sell beer at prices well below those of the brewery’s tied pubs.
Among the Devizes pubs that have closed over the past year or so are the Elm Tree in High Street and the Royal Oak in New Park Street.
