VAT's The Problem Case Study The Boot St Albans

The Boot is a beautiful old Grade II listed pub built in around 1420 and situated in the heart of St Albans historic cathedral quarter next to the clocktower. A great quality traditional pub, The Boot is known for its drink selection - which includes eight cask ales – and its authentic Mexican food. Sean Hughes has operated this much-loved local for the past 22 years on a long-term lease from Star Pubs. 

Sean says: “VAT has always been problem, now it’s a crippling one that is stifling investment in the business, reducing profitability to break-even point and preventing us employing more staff, who we desperately need.

“Inflation on everything from food and drink to energy in recent years has pushed up our VAT bill to the point where it is unaffordable. It is our single biggest tax. We are paying around £200,000 a year, double what we paid in 2019. The wars in Ukraine and Iran are further increasing costs. In that context, higher VAT is like a windfall tax on the back of these conflicts for the Government. The 20% VAT rate is now simply too high for the hospitality sector. It needs to be halved with immediate affect across the board to 10%. The argument that it would cost too much doesn’t hold water. If VAT doesn’t come down, businesses will close,  tax revenues will plummet and high streets – which rely on hospitality venues to fill retail space – will be hollowed out.  On the other hand, a reduction in VAT would not only be anti-inflationary but would result in healthier businesses and more much-needed growth, investment and jobs for the UK.”