Stone’s hospitality sector has been drawn into a national debate over tax and rising costs after Sir Gavin Williamson called for VAT on hospitality to be cut from 20% to 10%.
While the call followed a visit to The Hartley Arms in Wheaton Aston, the issue is likely to be watched closely in Stone, where restaurants, coffee shops, pubs and bars are a vital part of the town.
Sir Gavin, Conservative MP for Stone, Great Wyrley and Penkridge, said hospitality businesses were facing pressure from energy costs, ingredient prices, national insurance contributions and wage increases.
Trade body UKHospitality is also calling for VAT on hospitality to be reduced to 10%, arguing that pubs, restaurants, cafes, hotels and other venues are under pressure from rising costs.
For Stone, the issue reaches beyond one venue. Hospitality businesses help bring people into the town centre during the day and evening, support local jobs, and add to the character of the High Street and surrounding streets.
The Hartley Arms licensee Ben Peace said
“Reducing the VAT rate from 20% to 10% would provide vital support for us at The Hartley Arms in Wheaton Aston. Like many rural pubs, we face rising costs for energy, food, drink, rent and staffing.
“A lower VAT rate would help improve cash flow, allowing us to invest in the business, retain jobs, keep prices more affordable for customers, and continue to serve as an important community hub.”
He said the pub currently employs 28 people from the local community, but rising costs were making it harder to maintain the same level of staffing.
Sir Gavin said:
“Hospitality businesses including The Hartley Arms are being strangled by the Government almost into submission due to rising National Insurance costs, minimum wage increases, and loss of relief.
“Pubs are at the heart of our communities – they are a space for people to meet friends, family, and socialise as well as contributing to the local economy.
“They are also the first rung on the career ladder for young people and in the midst of a youth employment crisis, it is absolutely astonishing that they would introduce measures to further
exacerbate the problem.“Hospitality businesses need help now, not tomorrow. That is why I am calling on the Government to lower VAT rates from 20% to 10% before more are forced to call last orders.”
A Little Bit of Stone would like to hear from Stone pubs, cafes, restaurants and bars about whether the VAT debate reflects what they are seeing locally.
