This week’s rise in VAT on alcoholic drinks could sound the death knell for many pubs, it has been claimed.
With a rise of around 6p in the price of a pint, pubs are monitoring what effect the rise will have on their industry, particularly after a disappointing festive season.
Sandy Haxton, chairman of the Fife Licensed Trade Association, believes the trade is in for a tough couple of months and hopes publicans will be able to ride out the storm.
“It’s (the VAT rise) certainly not going to help and any increase at this time of year is going to have some effect on business,” he told The Courier this week.
“It just makes the differential between public houses and supermarkets even greater.”
Mr Haxton added that the early indications were that many pubs across Fife had a leaner than usual Christmas and New Year period.
He said, “Most people would say that it’s certainly been down on previous years and it’s a combination of things the way it fell this year and then the weather. A lot of people who maybe depend on functions were hit by cancellations and that sort of thing.
“I think the people in rural areas will have been affected more than the people in town centre. If you have a hotel in the middle of Fife and people can’t get out then you’re looking at your throat being cut, but if you are in a town centre you’ve got a chance of people walking to the pub.
“As far as our trade goes, you’ve got to keep your standards high and if you’ve got a good offering then people will still come in.
“Because December was poor, the hope is we might get a lot of people coming out in January but it’s all pie in the sky at the moment.”
Association committee member John Barclay reckons pubs are already struggling to make ends meet, given the competition from supermarkets and bulk buying promotions.Staying in”This VAT rise is just another nail in the coffin,” he said. “If you ask people what they were doing for New Year, many people will say they had a quiet one in the house with a few folk around and that’s what’s been happening for some time now.
“The smoking ban hit pubs hard, the supermarkets have done the same, and there’s been no relief for pubs. There’s nothing we can do and there are places shutting all over the place.”
Mr Barclay pointed to the Templehall area of Kirkcaldy, with the likes of the Buccaneer and Templehall Tavern closing.
“They were all busy pubs up there but look what’s happened,” he said. “It’s just a case of how much beating can you take?
“The thing about sitting in the house is there’s no buzz. At least if you go down the pub there’s an atmosphere there and that’s what pubs have to offer.”
Publican Dougie McWilliams said the average price of a pint would go from £2.70 to £2.90.
The landlord of the Ladybank Tavern did not reckon it would put customers off, but said it would hit them in the pocket.
He said, “In conjunction with the annual price increase which normally comes in the first week of January, the additional VAT will create an increase probably nearer 8% rather than the 2.5%. The overall effect of that will ultimately mean the price of drink and the on-trade in general will jump.
“Unfortunately, once again the customer bears the brunt of government increases. But it’s just one of these things we are going to have to put up with.”