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VAT / 01 April 2022

Trade bodies warn of ‘cost of business’ crisis in the hospitality sector

Trade bodies representing UK brewers, publicans and other hospitality businesses have today written to the Chancellor to warn of a cost of living crisis in the hospitality sector.

In an open letter to the Chancellor, the ‘One Voice for Pubs’ group warn “just as pubs, brewers and wider hospitality businesses began to turn their attention towards a sustainable recovery and helping to build back the UK, the invasion of Ukraine has exacerbated the growing energy crisis, pressures on the food and drink supply chain and labour shortages we were already facing.”

The letter comes on the same day as costs rise on everything from energy bills to council tax come into force, with the group highlighting the VAT increase for the hospitality sector from 12.5% to 20% is likely to cost pubs alone over half a billion pounds.

The group, which is made up of the British Beer & Pub Association, Campaign for Real Ale, British Institute of Innkeeping, UKHospitality, Society of Independent Brewers, Independent Family Brewers of Britain and Pub is the Hub, are calling on the Chancellor to bring forward a number of measures to help ease the impact of rising costs, including the implementation of alcohol duty reform.

Read the full letter

Notes to editors 

For further information or to arrange an interview contact Jessie Powell on jpowell@beerandpub.com / 07772245620 

  1. The annual cost to pubs of VAT returning to 20% from 12.5% on food and soft drinks is £516m, this is based on the assumption of 90% trading during 2022/23 

About the British Beer & Pub Association
The BBPA represents companies in the UK which between them brew over 90% of the beer sold in the UK and own 20,000 pubs. Our members include international companies, family brewers, managed locals, and the nation’s largest tenanted pub estates.   
@beerandpub beerandpub.com

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