Brighton and Hove’s café culture has come under attack in the budget, according to a leading local politician.
Councillor Gill Mitchell, leader of the opposition Labour group on Brighton and Hove City Council, said that Conservative Chancellor George Osborne had buried a damaging measure deep in yesterday’s budget.
She said that Mr Osborne is to change the definition of hot food meaning more cafés will be hit by VAT.
The tax will be charged at 20 per cent on food that is above “ambient temperature”.
Councillor Mitchell said that this would mean that fresh hot prepared food would be taxed while pre-packaged, pre-prepared food would not.
She said that the budget was also changing where in a premises VAT could be charged.
As a result cafés and restaurants would now have to add VAT when people sat outside in roped off areas.
Councillor Mitchell said: “This is not only an attack on businesses across the city, it is an attack on a way of life that the city is famous for.
“Brighton and Hove is famous for its café culture which employs thousands of people and attracts tourists from all over the world.
“Now businesses will either have to absorb the cost of this new tax or pass it on to the customer.
“Not only did the government attack the elderly and the vulnerable in their widely condemned budget but it appears they also want to attack residents and tourists who use restaurants, cafés and bars.
“The Tory-led government claim they want to promote growth and small businesses but they are doing everything that they can to make life more difficult for traders when they are already suffering due to the rising cost of food and fuel prices.”
Who could fly over this cuckoo’s nest…why of course…those having cakes, pies and ice creams…. That’s about 4 places in Brighton and Hove.
The government has pretty cynically gone for the only serious growth area in our national economy – fast food, cafe culture and dining out.
We do, however, in Brighton & Hove have far too many cafes replacing retail outlets. It is the reflex move when retail proprietors fail. Turn the shop into a cafe or, worse, a cafe/bar wanting to stay open all night.