"Pubs have made it clear that survival depends on both meaningful government support and a favourable business environment. The decision to address business rates, and that the current environment isn't fit for purpose, is a welcome acknowledgement of that reality. Tackling rates alone, however, only solves part of the problem. Any gains for pubs risk being consumed by rises to VAT on alcohol, which will further intensify ongoing cost pressures."
"Extended licensing hours may offer marginal opportunities to boost revenue, but they are far from a silver bullet. Without action to ease these wider pressures, many businesses will find that headline support measures fail to actually translate into real financial relief. Crucially, this challenge extends well beyond pubs. Hospitality remains one of the UK's largest employers, underpinning local economies and high streets across the country."
Pubs will receive £100m a year in business rates support. The package is limited because there is no reduction in VAT on alcohol, a decision likely to increase operating costs for licensed venues. Relief from rates risks being offset by VAT-driven price pressures, reducing the real financial benefit. Extended licensing hours may provide modest additional revenue but are unlikely to fully compensate for rising costs. Hospitality is a major UK employer that supports local economies and high streets. Support measures need to address sector-wide cost pressures to protect jobs and sustain communities.
Read at London Business News | Londonlovesbusiness.com
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