Restaurants and pubs are warning that prices will go up due to a rise in VAT rates, which takes effect from Friday.
Owners said the increase from 5% to 12.5% was badly timed, with one restaurant chain owner saying businesses were already “hanging by a thread”.
Trade bodies have called for a halt to any further rises in VAT, to help the industry recover from the pandemic.
The government said hospitality had received “extensive support”.
Read the full article on the BBC website
NAM Implications:
- This means that a bill of £50 will increase to £53.75…
- (and without any of the ingredients, rent, rates, labour costs already in the pipeline…)
- …enough to destabilise fragile demand?
