Sam Lamiroy said Burnham’s announcement is a step in the right direction and shows the government is trying to help, but agrees with Nick Smith that “VAT is the real problem”.
He said the turnover of a typical pub or restaurant can easily be between £500,000 and £1m, meaning a £1,000 saving “won’t make much difference”.
“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,” he told the .
Lamiroy also said he fears his Penzance-based bar and restaurant, 45 Queen Street, will not be considered a “pub” and so be ineligible under the terms of the support package.
And, urging the government to do more to support hospitality businesses, he said: “These are the first jobs for a lot of young people, it is a springboard into work.
“When these places shut, it’s not just my business and income that disappears, it is the entire team.”