UK pubs see World Cup boost, face closures

Pubs see World Cup boost but face ongoing closures, VAT campaign

9 reported

A single-source report from The Guardian indicates that the World Cup provided a temporary boost to UK pubs, with an estimated 5.5 million extra pints sold during the group stages. Pub landlord Sam Hale told the Guardian that people cannot get enough of football fever. However, the article notes that pubs are closing at a rate of two per day, with about 2,000 lost since 2020, reflecting a long-term decline in going out and rising costs such as energy bills, business rates, wages, and national insurance contributions. The hospitality industry is campaigning for a halving of VAT from 20% to 10%, supported by a petition with more than 288,000 signatures, though the article states this proposal is unlikely due to a likely cost to the Treasury of at least £10bn. A thinktank, Tax Policy Associates, pointed out that multinational businesses like McDonald’s would be the biggest beneficiaries of such a VAT cut. The article also notes that a recent survey found almost a quarter of pubs and restaurants are losing money, and that the shrinking number of entry-level jobs in hospitality is a concern highlighted in an interim report by Alan Milburn on young people and work.

What’s reported

Pub landlord Sam Hale told the Guardian that people cannot get enough of football fever.

An estimated 5.5 million extra pints were sold in the World Cup group stages alone.

Pubs are closing at a rate of two per day, with about 2,000 lost since 2020.

The hospitality industry is campaigning for a halving of VAT from 20% to 10%.

More than 288,000 people have signed a petition supporting the VAT cut.

The likely cost to the Treasury of the VAT cut is at least £10bn.

Tax Policy Associates stated that multinational businesses including McDonald’s would be the biggest beneficiaries of a VAT cut.

A recent survey found that almost a quarter of pubs and restaurants are losing money.

Alan Milburn’s interim report argued that the shrinking number of entry-level jobs in hospitality is a factor behind rising numbers of 16- to 24-year-olds not in work or education.