HOSPITALITY businesses renewed calls yesterday for an emergency VAT cut as the sector deals with rampant energy hikes.
New research released yesterday suggested that most bars and restaurants are dealing with “significant” energy cost hikes whilst a majority are also seeing dramatic hikes in their food and drink costs.
The new data, compiled by consultancy NielsenIQ and Fourth, also reveals that pubs and restaurants are dealing with reduced product lines as a result of gummed-up supply chains.
The British Beer and Pub Association has warned that only one in three pubs are currently making a profit as a result of rampant inflation.
Last night the body reiterated its call for an emergency VAT cut for the hospitality sector – similar to that introduced during the Covid-19 pandemic.