King's Lynn ale house director raises concerns over the lack of support for wet-led pubs

Concerns over the future of wet-led pubs were raised by the director of a Lynn ale house following last week’s Budget announcement.

Michael Baldwin, director of The Bank House and the Wenns Chop and Ale House, put it to MP James Wild that wet-led pubs would would not see any benefits from the five per cent reduced VAT rate for hospitality.

“We have a lot of wet-led pubs in the area and they’re not getting the same support,” he said following last week’s BID Budget Briefing.

“Pubs that don’t serve food are not getting any of the same benefits of the five per cent VAT rate that pubs that serve food, or hotels, are getting.”

The reduced VAT rate was revealed last week as part of the Chancellor’s Budget announcement.

Recovery grants are available for the hospitality industry, but the fixed five per cent VAT rate only applies to food and non-alcoholic beverage sales.

The VAT rate on alcohol sales will remain at the standard 20 per cent.

North-West Norfolk MP James Wild said: “I welcome the strong support for the hospitality sector in the Budget with new restart grants, extension of the business rates holiday, and the lower rate of VAT.

"Along with those measures, I campaigned for the freeze in beer duty to help pubs that the Chancellor confirmed, however, I recognise the disappointment that the VAT cut will not benefit wet-led pubs.

"Now we need to follow the roadmap to reopen the economy to support pubs and other businesses who have been hit so hard.“

Mr Baldwin was part of the team who took over the Wenns Chop and Ale House last January from the previous owners, Goldings, before relaunching the Saturday Market Place pub on March 1

Less than three weeks later, the pub was closed when the pandemic hit and due to strict lockdown restrictions it was only able to reopen in September for a short time before the next lockdown.

Mr Baldwin said: “It’s only really been open for five months since reopening. The pub has held itself because the grants have been good and the furlough scheme has helped with staff.

"It also has the Bank House to support it but other pubs don’t have that.

“We’re opening on April 12, but we’ll only be able to have eight tables at the front. It feels a bit strange to be reopening but we want it to be the community pub, that’s what it was intended for.”

With several wet-led pubs across the area, owners of the White Hart in Lynn and The Duck Inn at Stanhoe are among those who have previously spoken out about concerns over the restrictions on wet-led pubs.

Dan Jastrzebski, manager at Stephenson Smart, is a chartered accountant and tax advisor, he spoke about the changes to VAT at last week's BID Budget Briefing.

He said: “Obviously if the rate were to reduce it would help wet-led pubs, but they do still have access to the furlough scheme and grants. There is some support available, but it is less.

“Hopefully it won’t be too long before things start to open up. I think there will be a pent-up demand for going out and maybe the government is banking on this, and people wanting to get back to the pubs and spending money again.”

The reduced VAT rate will be available to businesses until September 30, when it will increase to 12.5 per cent, before returning to the pre-pandemic 20 per cent rate.