West Country pub landlords call for VAT cut ahead of the Budget

Pub landlords across the West Country have urged the government to cut VAT ahead of the Budget, warning that rising costs and taxes are pushing many venues to the brink. The BBC was told that one pub a day has closed for good in the region this year.

Business correspondent Dave Harvey visited the Forest of Dean, where Greg, landlord of the Doghouse in Coleford, said the job was getting harder. He said he was working more hours and taking less of a wage because of constant worries about staffing costs and when to turn on heating and lights. Electricity, heating and insurance costs were 'through the roof', he said, with no breathing space. 'At the moment, we're just tax collectors for the government,' he added.

Naomi Hands, who runs the Speech House Hotel, a meeting place for generations of foresters, was meeting her accountant. She said he sees dozens of hospitality firms' books loaded with government taxes, including business rates, National Insurance increases and VAT. The money has to come from somewhere, she said, and in theory the only option is to raise prices. But higher prices risk driving customers away, leaving landlords in a difficult position.

The government has already promised a 20% discount on business rates for pubs. Landlords still have different taxes in their sights, and several told the BBC that VAT is the biggest problem. Phil Kiernan, who organised the first campaign meeting in Gloucestershire for pubs, said cutting VAT would boost trade. He pointed to Ireland, where VAT was cut from 23% to 9% and now stands at 7%, and said the rate is between 10% and 13% in Europe. The Budget is due tomorrow.