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- Nick Mackenzie says hospitality firms must be given ‘breathing space’
The chief executive of Greene King has urged the Chancellor to avoid another round of ‘surprise’ tax hikes next month as the hospitality sector buckles under the weight of soaring costs.
Nick Mackenzie, who also serves as chair of the British Beer and Pub Association, told BBC Radio 4 on Friday pubs must be given some ‘breathing space’ after a rise in venue closures and job losses across the industry this year.
He also said that pubs could deliver economic growth if they weren’t handed a tax hike by Rachel Reeves in the 26 November Budget.
Mackenzie said: ‘We’re asking the Government to back pubs, and pubs will deliver for this country.
‘They will deliver growth, they will deliver jobs and they will deliver community cohesion.
‘What we have to do is get the right environment and that, in the short term, is about making sure taxation is fair for our industry.’
Nick Mackenzie also serves as chair of the British Beer and Pub Association
Mackenzie said Greene King has seen its costs rise by more than £300million since 2019 amid higher taxes, as well as stubborn food, energy and labour cost inflation, which has prevented the group from reaching pre-Covid levels of profitability despite higher revenues.
He highlighted the last Budget’s increase in employer National Insurance contributions as a major ‘surprise’ hit to the sector, but also urged the Chancellor to make the tax system ‘fairer’ via changes to VAT, business rates and beer duty.
Mackenzie said: ‘[Pubs] pay about 2.1 per cent of business rates, whereas the revenue we generate is about 0.4 per cent so it is unfair. It’s the same with duty – [UK alcohol duty] is one of the highest in Europe.
‘And if we reduce that, we can grow, we can create jobs, we can deliver investment.’
More than 600 Greene King landlords wrote to Rachel Reeves last month to join calls for lower business rates for pubs.
Businesses across the country are waiting for details on significant reforms to the business rates system in the upcoming November Budget, with Reeves set to reveal how the Government will fund permanent relief for smaller firms.
The Government is thought to be targeting large distribution properties, such as warehouses used by online retailers, with the intention of cutting rates for retail, hospitality and leisure firms.
Mackenzie’s comments chime with Wetherspoons boss Tim Martin, who last week called for Reeves to level the playing field by charging supermarkets and pubs the same rate of VAT and business rates
And Whitbread boss Dominic Paul on Thursday warned ‘the hospitality industry can’t afford another hit like’ last year’s Budget.
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This article was originally published by a www.dailymail.co.uk . Read the Original article here. .