Burnham business rates cut “a joke”, says Oxford hospitality

Pubs, clubs and live music venues across England will receive a 20 per cent reduction in business rates from April next year.

The new northern Prime Minister Andy Burnham estimates firms will save around £1,100 a year, on top of existing support to deliver an overall 35 per cent cut.

This £100m boost is being funded by a review of tax reliefs enjoyed by businesses such as vape shops.

In East Oxford, Taste Tibet co-owner Julie Kleeman said the “token gesture” leaves restaurants once again overlooked.

Like most Oxford hospitality owners we spoke to, the argue the best way to help boost business is bringing VAT down to 10 per cent, in line with much of Europe.

Tom Kerridge (Image: Mike Egerton/PA)

That demand sits at the heart of the national VAT’s The Problem campaign, fronted by chef Tom Kerridge, which is pushing for a permanent cut in hospitality VAT from 20 per cent.

Just under 300,000 people have signed so far with supporters warning that as more pubs close their doors, hitting that target will only get harder.

“These are absolutely desperate times” said Ms Kleeman, “The cut will only represent a saving which is still small in the grand scheme of things.

“We understand the government needs to claw what it can from somewhere but it’s not hearing the wider and louder shouts about where we need support”.

Tom Rainey outside The Punter in Oxford (Image: Oxford Mail)

Oxford publican Tom Rainey, who runs four pubs, including The Punter on Osney Island and the Porterhouse Grill off Botley Road, dismissed the business rates move as “a joke”.

He said a 10 per cent VAT rate would save his businesses up to £200,000 a year, compared with “a mere £1,000” from the new relief.

The Magdalen Arms landlord, Florence Fowler, left (Image: Richard Cave)

At The Magdalen Arms, landlord Florence Fowler said that while she is “not ungrateful” she would have rather seen the cut in VAT, also branding the news “a joke”.

“The news made me cry as we constantly live on edge”, she said, “The benefit of cutting VAT would mean we could get out of lockdown debt from loans”.

The Rose & Crown (Image: Newsquest)

Adam Hall of the Rose & Crown in Parade Avenue said businesses should “not turn noses up at any reduction” but hopes of a VAT cut “would soften the blow” in the future.

He said: “Even if the reduction is not as far reaching, we can still campaign for the VAT cut, which is the ultimate thing that will have a real impact to stop pubs closing.”

Dave Richardson of Oxford Campaign for Real Ale (Image: Oxford Mail)

David Richardson of Oxford Campaign for Real Ale welcomed the “good news” to help pubs survive against “today’s brutal economic conditions”.

But he urges ministers to act faster, highlighting the VAT petition calling on drinkers to support their local pubs through a difficult year ahead.