The second year of Tax Equality Day is expected to see 15,000 pubs and restaurants across the UK cut their prices.
Launched by Jacques Borel last year, the event is intended to demonstrate how a reduction in VAT for the hospitality industry can help to significantly boost business and stimulate job creation.
A vast number of businesses have signed up for this year’s scheme, set for September 24th, where prices of food and drink will be cut by 7.5 per cent. It is intended to provide the equivalent prices of menu items should the government agree to cut the VAT rate from 20 per cent to five per cent.
It is a move that has happened in countries across Europe to support the tourism industry and to entice overseas visitors. Among the businesses trying to create a similar system in the UK are Punch Taverns, J D Wetherspoon, TGI Friday's and Daniel Thwaites.
Some 40 companies, as well as many individual bars and restaurants across the UK, are a part of the initiative, with many also involved in Borel’s VAT Club—a lobbying group promoting the benefits for employment as a result of a lower VAT rate.
“A reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector,” Mr Borel has said.
“We are delighted with the response from the industry and expect many more companies and individuals to show their support for Tax Equality Day between now and the day itself.”
Many pubs and restaurants across the UK are therefore anticipating a huge rush for business on Wednesday 24th September. All involved would welcome such a boom in sales, in order to prove to the government the impact that such a change can make.
With an increase in sales, companies can focus on expanding their offering and creating a number of new hospitality jobs.
Berkeley Scott is a leading London hospitality recruitment agency