The hospitality industry is bracing itself for yet another blow as experts issue a stark warning that a proposed Taxi Tax could result in a staggering five million fewer trips to restaurants, bars, and pubs each year. The potential implementation of VAT on taxi journeys would have a devastating impact on an industry already struggling to stay afloat, heavily reliant on the 15 million cab journeys made annually.
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Mounting Pressure to Block the Fare Rise
Recent polling from YouGov reveals that the number of trips to these establishments could slump by a third if fares were increased by 20 percent. This worrying prospect follows a High Court ruling that may require private hire companies to charge VAT, which would likely be passed onto customers. As a result, Chancellor Jeremy Hunt is now under immense pressure to intervene and prevent this detrimental move.
Former minister Jonathan Gullis voiced his concerns, stating, “It makes no sense to burden people and businesses with a needless new tax, especially in an election year.” He emphasized the serious implications this tax hike could have on pubs, bars, restaurants, and communities across the country. Gullis argues that it contradicts the Conservative Party’s pledge to lower taxes in certain areas while raising them elsewhere, ultimately hurting businesses and local economies.
Dire Consequences for Publicans and Pub-goers
The British Beer and Pubs Association echoes these concerns, emphasizing the strain pubs are already under. The proposed Taxi Tax would significantly increase travel costs, discouraging many from going out altogether and directly impacting establishments nationwide.
The Stop the Taxi Tax campaign warns, “Brits love their locals, and our industry plays a key role in safely getting punters to and from home during a night out.” They argue that the Taxi Tax will render this service unaffordable for many, exacerbating an industry already grappling with millions of fewer trips to the pub each year. YouGov polling supports this sentiment, revealing that almost 70 percent of British adults oppose a VAT hike to 20 percent, with over a quarter of respondents expressing anger over the proposed tax.
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