We’ve submitted two budget ideas to give hope to the hospitality sector
EHDC has submitted proposals for the Government’s forthcoming budget that could save hundreds of embattled pubs, bars and restaurants from bankruptcy.
Councils and other organisations were invited to make policy suggestions for new PM Andy Burnham’s first budget on Wednesday 28 October.
And we have given the Government two great ways to help the hospitality sector in East Hampshire and across the country.
Business rates relief
The Government plans to introduce 15 per cent relief for pubs and live music venues in 2026-27. This is good, but it doesn’t go far enough. To give businesses the breathing space they need, EHDC asks that a further 20 per cent rate relief be applied. A business rate reduction of 35 per cent over the next three years will go a long way to helping businesses in this vital sector to survive.
Hospitality VAT
We are calling for hospitality VAT to be reduced from 20 per cent to 10 per cent. This would bring the UK hospitality sector in line with other European countries and would support rural areas like East Hampshire, which have a high proportion of hospitality sector businesses. The sector in this district supports 3,500 jobs, 8.1 per cent of the workforce.
Cllr Richard Millard, EHDC Leader, said: “The hospitality trade is so important to East Hampshire but it is having the life squeezed out of it with more and more landlords calling time on their pubs and bars.
“Over 70 per cent say that VAT is one of the biggest challenges they face, along with food and drink inflation and increased staffing costs.
“By implementing a substantial rate relief and cutting VAT, the Government could breathe fresh life into our hospitality sector, saving pubs, bars and restaurants from closure and supporting this vital part of East Hampshire’s economy.
“In offering a 15 per cent business rate reduction, the Government clearly knows it needs to do something - but it has not gone far enough.
“Our proposal of 35 per cent would support high street vitality and prevent further job losses in a sector facing a perfect storm of ever rising operational, regulatory and administrative costs.
“Every year the Government gives organisations like local councils the opportunity to suggest policies to be included in the Autumn Budget.
“We have made our submissions with two simple and effective ideas that would really make an impact. We shall see on 28 October if they want to support our pubs and bars or leave them high and dry.”