One of the licensees of a South Staffordshire pub has told how family members are working up to 60 hours a week without pay to keep the business afloat as he backs calls for VAT relief for the hospitality sector.
Ben Peace, who runs The Hartley Arms in Wheaton Aston with his wife Faye, has spoken out about the mounting pressures facing hospitality businesses warning that rising costs are threatening jobs, investment and long-term sustainability.
Ben said a reduction in VAT from 20% to 10% would provide ‘vital’ support for hospitality businesses.
He said: “A lower VAT rate would help improve cash flow, allowing us to invest in the business, retain jobs, keep prices more affordable for customers, and continue to serve as an important community hub.
“This change would strengthen the long-term sustainability of local hospitality businesses and support economic activity in rural areas. We have been proud to employ so many young adults from the local community, with the increase in living wage and NICS we are having to manage without their support.
“This has a knock-on effect on the level of service we can offer which may cause revenue to suffer should customers not return as a result. We currently employ 28 people all from the local community.
“Many pubs are currently surviving on the generosity of the owner operators. We have family collectively putting in 50 to 60 hours a week in the business without pay to avoid making a loss. It’s just not sustainable.”
Ben’s comment comes as Sir Gavin Williamson has joined growing calls for the Government to provide VAT relief to the hospitality industry.
The MP for Stone, Great Wyrley and Penkridge visited The Hartley Arms to hear about challenges facing the sector.
Following his visit, he said: “Hospitality businesses including The Hartley Arms are being strangled by the Government almost into submission due to rising National Insurance costs, minimum wage increases, and loss of relief.
“Pubs are at the heart of our communities – they are a space for people to meet friends, family, and socialise as well as contributing to the local economy.
“They are also the first rung on the career ladder for young people and in the midst of a youth employment crisis, it is absolutely astonishing that they would introduce measures to further exacerbate the problem.
“Hospitality businesses need help now, not tomorrow. That is why I am calling on the Government to lower VAT rates from 20% to 10% before more are forced to call last orders.”
Staffordshire entrepreneur Craig Wilkinson, whose portfolio includes Barlaston’s Lunar restaurant, has launched a parliamentary petition calling for a VAT reduction, warning thousands of businesses, jobs and millions in tax revenue are at risk.
Another campaign, #VATsTheProblem, spearheaded by chef Tom Kerridge is also pushing for the lower rate of VAT in the industry.
- Click here to sign Craig’s petition.
- Read about Staffordshire’s hospitality businesses backing the call for VAT reduction here.
Do you support the campaign to provide hospitality businesses with VAT relief? Let us know in the comments.
