Pub owners have welcomed a government package offering relief on business rates, but other businesses on the high street are questioning why they were excluded from the support. The relief, which amounts to a 20% reduction in business rates, has been described by some as a step in the right direction, though others argue it does not go far enough.
Sam Lamiroy, who owns a bar and restaurant in Penzance, stated that while the announcement is appreciated, the saving from a 20% drop in business rates is minimal for businesses with turnovers between £500,000 and £1 million. He emphasized that the more significant issue for survival lies with Value Added Tax (VAT).
"The 20% drop in business rates is really just lip service, it won't affect whether we survive or not, the real lever to pull is help with VAT, dropping the rate from 20% to 10% as it is in the rest of Europe," Lamiroy told the BBC. He also expressed concern that his establishment might not be classified as a "pub," potentially making it ineligible for the relief.
Lamiroy highlighted the importance of hospitality businesses, noting that they often provide the first job opportunities for young people. "When these places shut, it's not just my business and income that disappears, it is the entire team," he added.
Other business owners, like Nick Smith, who runs a board game cafe, have voiced similar sentiments. While the specific details of his exclusion are not detailed, the general sentiment among non-pub businesses is that the support package has overlooked broader hospitality and retail sectors. The BBC noted that pubs welcomed the support package, while other High Street firms asked why they were left out. This suggests a disparity in how different segments of the retail and hospitality industry are being addressed by government financial measures.