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Heston Blumenthal warns business rates and VAT are killing pubs and must be reformed

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Celebrity chef Heston Blumenthal has urged Labour to prevent a wave of pub closures at the upcoming Budget.

The television personality, who owns Michelin-starred gastropub The Hinds Head in Maidenhead, has said Rachel Reeves is running the risk of damaging ‘the heart of Britain’s social fabric.’

Blumenthal, 59, called for permanent reform to the hated business rates system, as well as a lower VAT rate for venues.

‘Pubs are at the heart of Britain’s social fabric, offering far more than just a place to buy a pint, Blumenthal said.

‘When a pub closes, it’s not just a business lost; it’s a piece of local heritage and of course somewhere to enjoy a drink and delicious food with great company.’

Warning: Heston Blumenthal has urged Labour to prevent a wave of pub closures

Warning: Heston Blumenthal has urged Labour to prevent a wave of pub closures

Launching a new campaign titled ‘Save the Great British Pub: A Call to Protect a National Treasure’, Blumenthal said the UK’s 20 per cent VAT rate is one of the highest rates for hospitality in Europe.

Lower taxes would ensure many pubs can stay open while also ‘contributing positively towards economic recovery of the nation,’ the campaign added.

Some 89,000 jobs have been axed in restaurants, bars, pubs and hotels since Reeves’ Budget last October, according to analysis of official figures by trade body UK Hospitality.

And there are fears more tax rises would exacerbate worrying rates of venue closures and job losses.

The industry was hit by a £500m increase in business rates in April alongside a barrage of other costs imposed by Labour.

That included the national insurance hike and a sharp increase in the minimum wage.

And the sector is grappling with high energy bills, which landlords say have tripled since the pandemic, while food prices have also risen in recent months.

It is the latest plea for help from the industry after more than 600 landlords told Reeves she must fix the broken business rates system as pubs fight to stay afloat.

Publicans told the Chancellor that ‘many pubs are struggling to make ends meet’ with ‘intense cost pressures making survival increasingly difficult’, The Mail revealed this week.

Business rates are a local levy based on the value of a commercial property, meaning shops and pubs pay a premium compared to online giants such as Amazon.

In its manifesto, the party promised to ‘replace the business rates system, so we can raise the same revenue but in a fairer way’.

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