Christchurch publican criticises £10m hospitality fund as ‘tinkering around the edges’
A Christchurch publican says a new grant for hospitality venues won’t stop pubs from being “taxed into oblivion”
A Christchurch publican has been critical of a new £10 million government fund for hospitality businesses, arguing that ministers are offering grants while failing to tackle the mounting tax burden threatening pubs and restaurants.
The three-year Hospitality Grant Scheme has opened for applications, with funding intended to help launch new hospitality ventures, bring empty premises back into use and support training programmes aimed at getting people into careers.
But Dave Burns, landlord of The Thomas Tripp in Christchurch, Dorset, said the scheme failed to address the fundamental pressures facing businesses like his.
“This is just another example of the government tinkering around the edges rather than dealing with the problem at hand, and that is our businesses being taxed to oblivion,” he said.
Mr Burns questioned how much difference the £10 million would make when spread across the UK’s hospitality industry.
“£10 million over three years sounds great in the headline but spread that across a hospitality industry as a whole, what difference is it actually going to make?” he said.
The government says the scheme recognises the important role hospitality businesses play in local economies and communities, from village pubs and family-run restaurants to neighbourhood cafés.
Ministers say hospitality also provides many people with their first job, helping them develop skills that can lead to careers both inside and outside the industry.
A further £3 million of the funding has been earmarked for Pub is The Hub, an independent organisation supporting pubs in rural and deprived communities to diversify their services.
Minister for the Future of Work Kate Dearden said hospitality venues were places where communities came together and where many people gained their first experience of employment.
The funding comes alongside plans for pubs, clubs and live music venues to receive a 20% reduction in business rates from April, with the government estimating a typical pub could save about £1,000 next year.
But Dave Burns said the measures did not go far enough as operating costs continue to rise.
“The cost of running a pub or restaurant have gone through the roof and we can't keep on passing those increases to the customer,” he said.
His solution is straightforward, cut VAT on hospitality to 10% across food and drink: “We're not asking for handouts, we just want a fair chance,” Dave said.