John Healey is a beer man. Does this spell good news for pubs?
Geoffrey Howe sipped a gin and tonic, Nigel Lawson quaffed a wine spritzer, while George Osborne and Gordon Brown stuck to mineral water. Ahead of his first Budget, one of the many decisions weighing on Chancellor John Healey’s mind will be whether to get a little squiffy at the despatch box. If he does, it [...]
John Healey, the Chancellor, is known for his love of ale. As he prepares to deliver his first Budget, pub industry lobbyists are closely watching to see if he will raise a glass at the despatch box. This could be seen as a sign of whether he plans to support the pub industry with any cost-cutting measures. The hospitality sector is in a favorable position ahead of the Budget, as the government has already announced a 20% reduction in business rates for pubs, clubs, and music venues.
This tax cut is seen as a start, but industry figures believe more substantial support could come from the Budget. One area of interest for pubs is the possibility of an increase in tax breaks for draught beer, which could create 7,100 jobs and lower the price of a pint. However, pub bosses are also urging for a reduction in VAT, which they believe is the "elephant in the room" and would provide the most significant cost relief.
While some pub landlords are wary of potential VAT increases or other "sleight of hand" cost hikes at the Budget, they remain optimistic that Healey's efforts to stabilize the UK's fiscal credibility will benefit the hospitality industry.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
