Catering news - For this month's news - View magazine »
VAT cut: The Guild of Fine Food comments on the effect on small businesses
Commenting on the 2.5% decrease in VAT introduced this week, Bob Farrand of The Guild of Fine Food maintains that all this will achieve is aggravation for the small business owner.
“While we welcome any attempt to fire up spending when consumers are being cautious, we believe the chancellor has not done enough,” says Farrand. “A 2.5% decrease in VAT on low value items reduces the price to the consumer by just pennies – that does not stimulate spend. A cup of coffee in one of our members’ shops suddenly goes from £1.99 to approximately £1.94. We see it only having an effect on higher value items such as TVs or cars.
“The key point is that the Chancellor has implemented a change – supposedly to improve the economic situation – that will result in considerable additional expenditure for all small businesses. The amount of work, IT changes and time incurred for a small business that is collecting a tax on the part of the Government is significant. In our industry we are having to reprint menus and price lists as well as tackling the back of house changes.”
Farrand concludes: “Legislation to circulate money within local economies would be a far more effective way of generating expenditure and would make a difference nationally.”
Previous issues - For latest news & articles view this month's magazine »
Inside this issue
Well done, Jerome Calayag From Sweden Announced As The Winner Of S.Pellegrino Young Chef Regional Semi-Final, And W… https://t.co/zS8M8u7Yks
RT @FishNChipAwards: We love a friday... not just because it's the end of the week but also because it gives us an excuse to get fish and c…
With the festive season nearly upon us, now is the time to check that all is planned and ready both to embrace and benefit from this particularly busy time of year. Read more >
Britvic’s 2017 research into the importance of soft drinks at Christmas revealed that almost half of consumers (45%) were set to buy more soft drinks at Christmas and over a fifth (21%) planned to drink less alcohol. Read more >