GBG Belgium Advert

Brewers Support VAT Cut to Create Jobs

News: April 2013

Some of the UK's major brewing and pub retailing names have lent their support to a new report that claims a cut in VAT in the hospitality sector would create hundreds of thousands of jobs.

The report from the Jacques Borel VAT Club, which represents 43 major pub, restaurant and hotel operators, claims that a reduction in VAT for the hospitality industry from 20% to 5% could generate up to 670,000 jobs in the UK, as lower prices encourage more business.

The initial cost to the Treasury of up to £7.8 billion would soon be offset sharply as the jobs created result in higher taxes being paid by both employees and businesses, and a reduction in the black economy. Most of the jobs would likely to go those previously unemployed, the report adds.

The report – commissioned by French entrepreneur Jacques Borel, who has successfully campaigned for similar VAT reductions across Europe – is backed by companies such as Brains, Fuller's, Charles Wells, St Austell, Shepherd Neame, Punch Taverns and JD Wetherspoon.

Bookmark and Share