Shepherd Neame

Move would stimulate economy and create jobs

Shepherd Neame is calling for politicians to reduce the level of VAT on drink, food and accommodation in pubs.

The Faversham-based brewer, which has 237 pubs in Kent, says the move would stimulate the economy and create jobs.

Chief executive Jonathan Neame said: “A reduction in VAT will stimulate jobs and investment in local and rural communities. This approach has already created jobs in Germany, Belgium, Sweden and France and we think it will work here.”

A campaign on the proposals, currently underway and orchestrated by French leisure entrepreneur and lobbyist Jacques Borel, says that cutting VAT to five per cent in the UK hospitality sector would create up to 320,000 jobs, many of them in the 16 to 24-year-old age group, which recently hit a 17-year high unemployment rate of one million.

Mr Neame said: “Each pub contributes an average of £80,000 to its local economy each year but licensees are struggling because they are hampered by excessive tax increases and legislation. Reducing VAT in pubs will provide more jobs for young people and safeguard an important community hub.

“This is a simple measure that could make a big difference to the UK’s hospitality and tourism sector, an area of the economy in which jobs can be created relatively quickly and at relatively low cost.”

Shepherd Neame brewed 68 million pints of beer in 2011, and 4,500 people work in its pubs, hotels, brewery and distribution centre.