VAT campaign is a recipe for success

You won’t be surprised to hear I’m right behind any measure that seeks a reduction in VAT, especially in the hospitality sector.

I’d be pretty stupid not to given that I own bars, clubs and restaurants and have to hand huge amounts of my income to the Government money I could put to much better use investing for the future.

But what makes this campaign and its national day of action, Tax Parity Day on September 25, so worthy of support is that it isn’t just about slashing tax from 20% to 5%, but about levelling the playing field between supermarkets and the hospitality sector.

It aims to redress the unfairness that exists and if this campaign was successful thousands of jobs would be created in the UK.

In France a similar reduction led to the creation of more than 225,000 jobs in the first year and it’s estimated a cut in VAT on food would create 600,000 jobs in the UK.

It’s a no-brainer, or rather it should be for those at Westminster (many of whom have no brains).

But sadly they still haven’t grasped the simple logic that if businesses pay out less at the front more will be left over to be invested in growth and job creation, in turn making more for the Government through the taxes of the newly employed.

It has also been a proven winner in Sweden, Belgium and Germany. If it can work in those countries there’s no reason it can’t work here.

It would certainly prove to be the much needed shot in the arm the hospitality sector has been craving for these past few years, during which almost 10,000 UK pubs have closed and more than 50% of beer sales have been lost to the supermarkets.

It isn’t fair that you’re charged 20% VAT for the privilege of eating out but zero if you buy the same meal and drink in a supermarket.

I’m not suggesting for a second that VAT should now be added to your weekly shop, but that parity and fairness be applied in the opposite direction.

Veteran French VAT campaigner Jacques Boral is spearheading the campaign. On September 25 he is calling for thousands of other publicans, food service operators and restaurateurs to drop their prices for one day to the equivalent of a VAT reduction to 5%. That would bring the average cost of a family meal down from £60 to £54.

Turnover should go up for those taking part. It was Jacques who successfully mounted the challenge in France and turned the fortunes of their bars and restaurants around. The proof is in le pudding!

So if you wish to help create more jobs visit a participating pub or restaurant on Wednesday and reap the benefits.

You never know! If enough of us ate out the bean counters might just wake up to the fact that a high rate of VAT deters investment and stifles growth, and that people spend more, not less, when their pockets are stuffed full of wonga instead of bills.

Talk about stating the obvious! But let’s face it, if they spent less time cooking their own grubby books and more on this recipe for success by now we’d have an affordable dish we’d all find appetising.

As it is, we’re all still stuffed.