News > Legislation

Loading...

John Penrose Video Interview: Hospitality industry still needs to show Government why its VAT cut is different

By Peter Ruddick , 24-Jul-2012

Related topics: Business, Venues, People, Trends & Reports, Legislation, Tourism, VAT, Restaurants, Hotels, Pubs & Bars

In a wide-ranging, exclusive video interview for BigHospitality, Tourism Minister John Penrose has ruled out making a VAT cut for the hospitality industry a long-term ambition for the Government and has said businesses still need to show why a cut would be so beneficial.

Penrose said the Treasury receives a number of professional proposals from various industries promising 'jam tomorrow' if they receive a tax cut. He argued the hospitality industry was yet to show the Chancellor why its cut was different and would be more beneficial to the wider economy than other sectors also lobbying for tax relief.

Cynical

"One of the things the industry has to do is to work out how it can show that its proposal is different and it has to convince people at the Treasury who are wearily cynical," he told BigHospitality.

The industry, he said, needs to show that: "While the miners and the farmers and everybody else may be promising the same things, the hospitality industry is better at producing it and better at delivering it. That is a tough ask - I think everyone in the industry understands that but that is the kind of credibility that we have got to establish if we are going to get anywhere with this."

Earlier this year Jacques Borel, who is leading one of the more high-profile campaigns for a VAT cut for the industry, redesigned the logo of his VAT Club to reflect the focus a cut could bring to employment in the UK.

Announcing the industry jobs event The Big Conversation , Whitbread Hotels & Restaurants managing director Patrick Dempsey told BigHospitality a co-ordinated show of the employment strength of the industry could help its lobbying power with the Government on issues such as VAT.

Surprised at criticism

Penrose also expressed 'surprise' at criticism emerging from the inaugural British Hospitality Association (BHA) Summit in May and denied the Government was not listening to industry wealth creators or was all talk and little action.

The Minister also revealed he had appointed a 'Star Chamber' to investigate what proposals the taskforce investigating red tape and regulations had suggested were viable.

Referring to repeated calls for a dedicated hospitality minister or Cabinet representative for the industry, Penrose admitted the brief did mean liaising between departments but denied a separate department or role was needed and said Jeremy Hunt, David Cameron and George Osborne were 'on side'.

Other points made by Tourism and Heritage Minister John Penrose:

  • There is still a great deal to do to implement promises made in the tourism strategy published eighteen months ago .
  • Having less industry figures to talk to would be 'marginally helpful and convenient' but consolidating representative organisations would not help the bodies or the lobbying power they hold.
  • The biggest frustration in the job is the large amount that remains to be done to encourage visitors to explore parts of the country outside of London and use hospitality businesses in various other cities .
  • Whatever happens with any future Government reshuffles his job is a 'great' one, he would be delighted to remain in post and it is 'one of the best jobs in Whitehall'.

Related Articles on this topic

Non-alcoholic drinks: How to improve your coffee offering

Non-alcoholic drinks: How to improve your coffee offering

In the final part of our special feature on non-alcoholic drinks, BigHospitality travelled to...

National Apprenticeship Week: The way forward for hospitality

National Apprenticeship Week: The way forward for hospitality

The Mayor of London Boris Johnson got National Apprenticeship Week off to a ‘frying...

Customer-focused technology: High-tech hospitality in action

Customer-focused technology: High-tech hospitality in action

For the final part of our technology special feature, BigHospitality checked in at one...

Housekeeping Olympics: Celebrating the heart of hotels

Housekeeping Olympics: Celebrating the heart of hotels

Hotel housekeepers are the unsung heroes of the industry, but where would we be...

Aiden Byrne on Manchester House: Business success before Michelin star

Aiden Byrne on Manchester House: Business success before Michelin star

Manchester House, the partnership between chef Aiden Byrne and restaurant and pub company Living...

Hospitality House: Behind the scenes of the industry’s new home

Hospitality House: Behind the scenes of the industry’s new home

The Hospitality Guild’s new hub and training venue aims to help the sector address...

Claude Bosi: Hibiscus must evolve to stay on top

Claude Bosi: Hibiscus must evolve to stay on top

Two-Michelin-starred chef Claude Bosi says he must not turn a blind eye to the...

Chef collaboration: Angela Hartnett and Luke Holder on working together at Hartnett Holder & Co.

Chef collaboration: Angela Hartnett and Luke Holder on working together at Hartnett Holder & Co.

Can having two chefs' names above a restaurant door really work? That was one...

VIDEO: The National Restaurant Awards 2013

VIDEO: The National Restaurant Awards 2013

The National Restaurant Awards 2013 took place in London last week, where 100 of...

Young National Chef of the Year 2013: 'Driving out the best in the industry'

Young National Chef of the Year 2013: 'Driving out the best in the industry'

There is just a week to go until the final of the Young National...

Back in business: Hospitality property market outlook

Back in business: Hospitality property market outlook

As the new year gets rolling, now is the perfect time for hotels, restaurants...

Digital restaurant: How to extend your reach with online innovations

Digital restaurant: How to extend your reach with online innovations

The likes of social media, online advertising and mobile loyalty apps allow businesses large...

#SocialRestaurant: How to use Twitter effectively

#SocialRestaurant: How to use Twitter effectively

They’re all on it. Big national chains, high-profile chefs and small emerging brands across...

Dietary requirements: Terre à Terre’s top tips

Dietary requirements: Terre à Terre’s top tips

In the third part of our Dietary Requirements special feature, BigHospitality takes a trip...

How to become a hotel manager: Masterclass with Glion

How to become a hotel manager: Masterclass with Glion

What skills do you need to be a hotel manager? Following a special media...

Budget 2013: What it really means for your hospitality business

Budget 2013: What it really means for your hospitality business

Now the dust has settled on George Osborne's fourth Budget speech, the race is...

UK pub industry pledges more than 400 work placements in just one week

UK pub industry pledges more than 400 work placements in just one week

Long hours, unskilled work and few career development opportunities: the hospitality industry, and pubs...

UK team 'disappointed' by ninth place at the World Pastry Cup

UK team 'disappointed' by ninth place at the World Pastry Cup

Martin Chiffers, president of the UK's Coupe du Monde de la Pâtisserie club, has described...

Every hospitality business must make job creation pledge, says Ufi Ibrahim

Every hospitality business must make job creation pledge, says Ufi Ibrahim

Ufi Ibrahim has told hospitality businesses across the UK that they must ‘walk the...

How to market your hospitality business better using photo and video

How to market your hospitality business better using photo and video

A picture might tell a thousand words but getting the right photo and video...

BigHighlights

National Restaurateurs’ Dinner 2014: in pictures

National Restaurateurs’ Dinner 2014: in pictures

The 27th National Restaurateurs’ Dinner (NRD) took place at the Dorchester on Tuesday, helping raise over £80,000 for...

Travellers’ Choice: Top 10 UK tourism hotspots

Travellers’ Choice: Top 10 UK tourism hotspots

London is the third-best travel destination in the world, according to TripAdvisor’s sixth annual Travellers’ Choice awards...

#AskMark: Our inspiring Twitter Q&A with Mark Sargeant reviewed

#AskMark: Our inspiring Twitter Q&A with Mark Sargeant reviewed

Whether it was his advice for young chefs, his memories of working with Gordon Ramsay or his...

Business Profile: Ping Pong

Business Profile: Ping Pong

Ping Pong’s change-of-location strategy and design brief move it a step closer to bringing dim sum to...

Development Chef Awards 2014: In Pictures

Development Chef Awards 2014: In Pictures

The Farm Frites Development Chef Awards 2014 took place in London yesterday, recognising and rewarding the best menus, dishes...

Find us on Facebook

Digital Edition - Restaurant Magazine

Access to the Restaurant Magazine digital edition