With the cost of living crisis kicking in today, Rishi Sunak also increased VAT on pints, which has gone up from 12.5% to 20%. This means your average pint at your local could increase in price by 20p per pint.
This increase in VAT is said to rake in a whopping £450 million per year from an industry that was devastated during the pandemic. Many hospitality firms have said this increase, including the cost of energy and a rise in national insurance, could see the end of many establishments.
The Chairman of the City Pub Group, Clive Watson, has stated that he understands “the chancellor’s got to recoup the money to pay for COVID, but he shouldn’t be suffocating industries that have suffered that badly.”
The Treasury said that the hospitality sector knew that this was a temporary VAT decrease and they knew it would increase. A spokesperson for the Treasury said, “We’ve stood behind the hospitality sector throughout the pandemic with £400billion package of economy-wide support that saved millions of jobs.”
While the Treasury claims to have been the saviour of millions of jobs in the hospitality sector, this increase in prices on multiple fronts could also see millions of jobs being lost.