Weatherspoon, its customers, and employees have paid £6.1 billion of tax to the government in the last 10 years!
In Wetherspoon’s 2019 financial year, before COVID 19, it generates £764.4 million in tax – about £1 in every £1000 of all UK government taxes. The average tax generated per pub in 2019 was £871,000.
In the financial year ended July 2020, when pubs were closed for a long period, and the company made a substantial loss, £436.7 million of taxes were generated, net of furlough payments.
Of the company’s financial years 2011-20 the taxes amounted to about 42% of every £1 which went “over the bar” net of VAT – about 11 times the company’s profit.
Ben Whitely, Weatherspoon’s Finance Direct said “pub companies pay enormous amounts of tax, but that is not always well understood by the companies themselves since most taxes are hidden in a financial fog.
This data highlights the amount of tax which the company , its customers and employees have generated, highlighting the importance if the hospitality sector to the nation’s finances.
Weatherspoon understand the need for taxes, yet, like the hospitality industry generally, believes that there should be tax equality among supermarkets, pubs, restaurants and similar businesses.
Until recently, supermarkets have paid zero VAT on food sales, whereas pubs, restaurants, and hotels, for example, have paid 20%.
The chancellor, Rishi Sunak, announced a temporary reduction last summer to 5% VAT for pub and restaurant food sales, but the government intends to revert to 20% this year.
Pubs also pay about 20p a pint in business rates, whereas supermarkets pay only about 2p.
It does seem wrong that dinner parties in Chelsea, for example, pay zero VAT for food bought from supermarkets, when pub customers normally pay 20% VAT for fish and chips.
Weatherspoon’s, concluded “Equality and fairness are important principles of efficient tax regimes, and we urge the government to introduce equality in this area – sensible tax policies will increase investment and government revenues.”
While I am not a massive Weatherspoon’s pub fan, preferring a independent local pub whenever going for a pint. they really are making a good piont of not only the amount of taxes a pub contributes to the governments coffers. Also the unlevel playing field with supermarkets, in comparison to the duty levels. Add to the fact many of the supermarkets got business rates relief during Covid while they were trading their socks off! A few did repay this money but others pocketed the money along with massive profits!!!
Comrie have heard complaints along the lines above from the many pubs and social clubs we hire our fruit machines to and have to agree this needs to be addressed.