The campaign set-up to lobby for a cut in VAT charged in hospitality businesses on drink, food and accommodation to 5% has redesigned its logo to represent a refocus for the campaign on the employment benefits a VAT boost to the industry could give the economy as a whole.
VAT Club JB, formed by French leisure entrepreneur Jacques Borel, has redesigned its logo to include the word ‘jobs’ as the organisation estimates between 140,000 and 320,000 extra jobs could be created if the Government slashed VAT from the current rate of 20 per cent.
Borel, who has seen the campaign backed by a number of industry organisations, said the UK could learn from his native country about the employment benefits of a VAT boost.
“In France, for example, which has implemented the VAT cut, a total of 127,500 new jobs have been created in just over two years. New jobs have also been created in many countries, including Belgium, Germany, Finland and Sweden, following a cut in VAT,” he said.
With the next Budget just over a week away, Borel said the move would be very welcome to tackle unemployment which rose to 2.67m in the three months to December 2011.
“New jobs are always to be welcomed and never more so than at a time of rising unemployment. Our message is simple – a reduction in the level of VAT will create a huge boost to the economy and just as importantly create new jobs,” he added.
In January the Independent Family Brewers of Britain pledged £240k of funding to Borel’s campaign saying that the industry was being unfairly treated on VAT when compared to the rate people pay on food in supermarkets.
Last month BigHospitality reported further lobbying of the Government on behalf of the industry when the beer and pub industry joined together to demand a freeze of the beer tax escalator.
In a separate development, Stephen Kyjak-Lane, general manager of the Lancaster London hotel and the new chairman of the London advisory board of hospitality careers charity Springboard, said a Government minister for hospitality was needed to promote the industry to jobseekers.