Pubs heading for a "disaster" says Sacha Lord, while inflation destroys hospitality

Pubs heading for a “disaster” says Sacha Lord, while inflation destroys hospitality

Manchester night economy adviser Sacha Lord is urging the chancellor to cut VAT back to her pandemic discount rate of 5% as inflation soars to a record 40-year high. He said the hospitality sector was heading for an “absolute catastrophe” if the government did not intervene quickly to face soaring bills for bars, pubs, restaurants and hotels.

“My phone is off-hook at the moment.” The overall feeling, certainly from the independents, is that at least during the first lockout, there was support, holidays, relief from business rates, repayable loans, but no one expected this, “said Manchester Evening News. “Unfortunately, it will be the operators in disadvantaged areas who will be most affected. Street boozers and community pubs.

“In Greater Manchester there are 1806 ‘wet’ pubs, so pubs that do not serve food, and the vast majority are located in our poorest areas, and of course, if you have the choice to buy a pint, or. eat and heat, I don’t blame people for having to choose. “

The Lord tweeted yesterday that the chancellor needed an emergency budget and that hospitality was “facing another cliff.” One Durham hotel and pub owner replied in the comments below: “I have seen a massive and steady decline in sales over the last month. The average pub was designed to accommodate the hard working class. The hard-working class really, really feels the pinch in its pockets, because inflation reaches 9%. Going to the pub is a real treat now. ”

The Lord, who is behind the Warehouse Project and Parklife Festival, added that he was heading to London in two weeks to meet with hospitality business authorities, with plans to lobby the government to reduce VAT to either 12.5 percent or even 5 percent. was during locking.

“There is no time for hesitation,” the Lord added. “He said something could happen in the fall, but the chancellor must do something now. Some of the things he did during the lock were fantastic and I realize there is no blank check. But there are things he could do immediately, like refunding VAT at 12.5, even 5%, and reducing VAT on energy costs. The unexpected tax imposed on energy suppliers did not seem like nonsense, but they voted against.

“At a restaurant in Manchester, well known, their electricity bill just came out at £ 8,000. You don’t have to be an accountant to realize that this is not sustainable. We are heading for a recession, I am convinced of that. And we come to a very critical point. People see that their monthly wages are not keeping up with inflation, so people will start to go out less, choose where to go and start spending less. He won’t get anything in PAYE. The Chancellor must act immediately. “

The Lord’s comments come after Pizza Hut CEO Neil Manhas said the hospitality industry could face “double-digit” percentage growth throughout the supply chain. “As a global company, we can withstand the challenges that await us, but small and independent businesses will have difficulty if they are not supported today,” he said.

It also comes after Bank of England Governor Andrew Bailey warned that the UK is facing a “very big income shock” due to rising global food prices.

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