Now Christmas is over, we can all start looking forward to 2011 and whatever it has in store for the hospitality and foodservice industries.
The festive season hit its fair share of hurdles for the industry, with the recession and the relentless bouts of snow having a negative impact on normally booming sales in foodservice.
Now 2011 is upon us it would be lovely to say that the bad stuff is all behind us. Unfortunately not…
The newly introduced VAT increase is predicted to cause more turbulence, leading to the loss of nearly 9,000 jobs, according to research by New Oxford Economics.
The hike in VAT to 20% will see a typical pub pint break the £3 barrier for the first time. The 2.5% difference adds over 6p onto the price of a pint, which comes on top of a 26% rise in beer tax over the past two years as it is.
The pub and hospitality sector is now set to face a double whammy of duty and VAT, strengthening the shackles that are preventing jobs being created and hindering industry growth.
The VAT increase is something that will hurt each and every one of us, in the majority of industry sectors. Let’s hope it won’t add to crumbling small, family-run businesses that will be less likely to absorb the tax shocks.
Fingers crossed the March budget will have some good news for the industry. For now…keep soldiering on!
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