One of the country’s leading chefs has banned Prime Minister Rishi Sunak and Chancellor Jeremy Hunt from his restaurants in protest over “brutal” VAT rules.
Dean Banks is also giving customers at his St Andrews and Edinburgh eateries 20 per cent off their bills on Fridays as part of an awareness campaign highlighting the difficulties faced by independent food and drinks businesses.
Former Masterchef finalist Mr Banks, owner of Haar and Dune in the Fife town, slammed the UK Government’s “smoke and mirrors” budget which he claims has left the industry high and dry.
“We needed help and we got none,” he says.
He says Mr Sunak and Mr Hunt are barred from his restaurants and encouraged others to do the same.
Mr Banks, from Arbroath, wrote on Instagram: “Any independently owned site in the UK has the right to ban anyone.
“Join me in barring both of these terrible people.
“Please share and tag others if you are part of the hospitality industry.
“They shouldn’t be allowed in any site in the UK.”
He later told us: “This is not party-political. I just want to support my industry.
“I have a voice, I will always try and do the best for my industry.”
20% VAT rate ‘does not work’
Speaking to The Courier, Mr Banks says the current taxation system does not work for the restaurant industry.
Multiple diners, cafes, pubs and restaurants have closed recently, he added, with little help from the Treasury.
“Trade is really difficult at the moment, and on top of that every three months there are huge tax bills coming in,” he said.
“Before, when the price of utilities and produce and costs weren’t so high, the 20 per cent VAT rate definitely worked.
“But that has changed massively in the past 18 months. No longer does the 20 per cent VAT rate work in our industry.
“I’ve spoken with many other chefs, business owners, hoteliers, and they are all saying the same thing, this just does not work any more.
“Our bottom lines are gone.
“Businesses are just breaking even, and the ones that can’t break even are closing.”
VAT Free Friday
Visitors to the Haar and Dune restaurants in St Andrews, and the Pompadour in Edinburgh, can now get 20 per cent off their food bill on Fridays.
And Mr Banks says it is important to make customers aware of the VAT issues.
He said: “We wanted to do something to highlight the difficulties, to make people understand what we are facing.
“Now VAT is usually something put on the bottom of a bill. But it’s not particularly highlighted.
“So this 20 per cent off will be highlighted on your bill. People will be able to see how much of that is going to the government.
“Then if we make any profit there is corporation tax, on top of National Insurance, staff taxes. It has just become too much.
“VAT is taking a huge amount of business. It is like giving 20 per cent of your business straight to the government, and not on the bottom end, on the top end. It is bonkers.
“Most businesses pay VAT on the goods they buy, and charge VAT on the goods they sell. They can claim back the VAT they pay on bought goods so it is sort of cancelled out.
“For us, we pay 20 per cent to HMRC on the meals we sell, but we don’t pay it on the ingredients we buy in so we can’t claim it back. It’s just 20 per cent of our income gone, every three months.
“We needed the help in this week’s budget and it wasn’t given.
“We are asking our loyal customers, and people in general, to go out and use local and independent cafes, restaurants and bars. If you have the money, please go out and enjoy them.
“These places you love, this is the time they need your support.”
When asked about government measures like the freeze on alcohol duty, Mr Banks said the move was “smoke and mirrors”.
Duty freeze
Duty on beer, wines and spirits was due rise by three per cent in August but the freeze has been extended to February next year.
Chancellor Jeremy Hunt insisted the move was “backing the great British pub”.
But Mr Banks points out restaurants and pubs do not pay duty and the cut only applies to suppliers.
“They aren’t passing on any ‘savings’ because there are no savings. Producers have had to face rising costs too.”
Conversation