North Yorkshire Chef Urges VAT Cut to Revitalize Hospitality and High Streets
Tommy Banks, a prominent chef from North Yorkshire, is advocating for a reduction in VAT to revitalize the hospitality sector and high streets. His comments come following the government’s recent announcement of an aid package aimed at supporting pubs amid a business rates revaluation that jeopardizes their financial stability.
Tommy Banks and His Culinary Ventures
Tommy Banks operates several renowned restaurants, including The Black Swan at Oldstead and Roots in York. He is also a part-owner of the General Tarleton in Ferrensby, collaborating with Jeopardy Hospitality to restore pubs across the region.
Call for VAT Reduction
In his remarks, Banks expressed frustration over the government’s understanding of the challenges plaguing the hospitality industry. He noted significant closures and job losses since last year’s increase in National Insurance. He believes that cutting VAT to approximately 13% could significantly alleviate pressure on businesses and curb the ongoing decline.
- Tommy Banks suggests that a VAT reduction could prevent further high street closures.
- He referred to the situation as merely “the tip of the iceberg”.
Government Support Criticized
While the government announced an aid package which includes a 15% reduction in business rates for pubs starting in April, many in the hospitality sector argue that this support falls short. York Central MP Rachael Maskell criticized the measures as inadequate for high streets, and Thirsk and Malton MP Kevin Hollinrake pointed out that the package excluded restaurants and other hospitality businesses.
In response to the ongoing challenges, Treasury minister Dan Tomlinson mentioned that property tax bills in England would be frozen in real terms for the next two years. While the support would provide an average pub with £1,650 next year, this effort is overshadowed by the removal of a 40% discount on business rates established during the pandemic.
The Way Forward for Hospitality in North Yorkshire
Banks’ plea for a VAT cut highlights a critical need for more substantial reforms in the hospitality sector. As businesses continue to face mounting pressures, stakeholders urge the government to consider broader reforms that encompass all areas impacted by the pandemic.
