Labour Faces Pressure to Abolish 'Table Tax' on Outdoor Seating
Labour is being urged to eliminate the so-called 'table tax' imposed on cafes, restaurants, and pubs that offer pavement seating, allowing Britons to enjoy food and drinks in the summer sunshine. Campaigners are calling on ministers to scrap the requirement for businesses to obtain licences for customers to eat and drink while seated at outdoor tables.
Boost for Struggling Hospitality Industry
Advocates claim that removing this fee would provide a significant boost to the hospitality industry, which is currently grappling with cost pressures from inflation and rising business rates. Pavement licences for bars and eateries became widespread during the Covid-19 pandemic, with a £100 fee granting a one-year licence aimed at increasing customer footfall while adhering to social distancing guidelines.
This system was made permanent by the 2023 Levelling Up and Regeneration Act. However, councils can now charge up to £500 for a licence lasting up to two years, with renewal fees set at £350.
Criticism of Council Enforcement
The Conservative Environment Network (CEN), which is spearheading the 'scrap the table tax' campaign, argues that local authorities are enforcing these rules 'egregiously'. They highlight that Westminster City Council only grants licences for three to six months at a time, requiring businesses to pay £350 for each renewal.
CEN has also accused Watford Borough Council of 'punishing firms for increasing their footfall' by implementing a tiered system where businesses pay varying rates based on the number of chairs they provide.
Political Backing for the Campaign
Blake Stephenson, Tory MP for Mid Bedfordshire and a CEN member, stated: 'Labour's anti-business agenda is killing our high streets and stifling economic growth. Our cafes, pubs and restaurants are facing eye-watering business rates, rising national insurance contributions, and overbearing red tape brought in by this Government.'
He added: 'We should be doing everything we can to help our hospitality industry thrive. Instead, it is being burdened with additional costs and bureaucracy, even just to put a few tables and chairs outside. The Government should scrap the table tax to show that it backs British businesses.'
Fellow Tory backbencher Jack Rankin, MP for Windsor, commented: 'Overbearing red tape and anti-growth measures are hampering the Great British pastime of enjoying a pint in the sun. It is ridiculous that our pubs, bars, cafes, and restaurants have to apply and pay for a licence to put a few tables and chairs outside.'
Rankin noted: 'With the World Cup coming up this summer, the Government can show it is on the side of hospitality businesses and their customers by scrapping the table tax.'
Campaigners' Perspective
Kitty Thompson, head of campaigns at CEN, said: 'When the weather is nice, people inevitably want to sit outside in the fresh air. Hospitality businesses should be able to provide the tables and chairs for their customers to do this.'
She continued: 'But the small businesses that are the lifeblood of our high streets must pay their council for the privilege of providing what their customers want. This is a ridiculous state of affairs. There is no need for councils to burden themselves and local businesses with the bureaucracy of applying for a pavement licence.'
The campaign underscores broader concerns about regulatory burdens on small enterprises, particularly in the hospitality sector, which plays a vital role in local economies and community life across the United Kingdom.
