Leisure Media Issue 3 2009 - Leisure Opportunities

Despite alcohol duty rising, it seems attitudes towardsthe ailing pub industry have softened, Simmonds saysprojects will be able to take advantage unless they’re very welladvanced.Finally the chancellor announced that the reducedrate of VAT, down from 17.5 per cent to 15 per cent, will end on31 December 2009 – somewhat of a nightmare timing for pubs,bars and restaurants open late that night!ALCOHOL AND GAMBLINGAs expected, alcohol duty rose two per cent on 23 April in linewith the escalator introduced last year. It’s interesting that thisputs the rate of inflation at nonexistent, as the escalator workedon two percentage points above inflation. Despite this, it seemsclear that the ‘Axe the Tax’ campaign by the pub and brewingindustry has certainly been listened to and there is a softeningof attitudes towards an industry with 40 pubs closing a week.For gambling, there were definitely changes. The chancellordecided on a long campaign to remove the ‘double taxation’on bingo participation fees, but more than made up forthis positive decision by raising bingo duty from 15 per centto 22 per cent and including GPT (gross profits tax) on intervalbingo. For Amusement Machine License Duty (AMLD) ongaming machines, the increase across the board was nine percent, which is way above inflation. Of even more concern wasthe announcement that there is to be a consultation on replacingAMLD with GPT. The industry fought off a Treasury attemptto bring in GPT in 2003. If AMLD is removed, one of the majorproblems is that AMLD comes with VAT. If VAT is not paid,neither can you reclaim it or offset it against other businessexpenses. The industry waits with interest to see what the consultationmight say and what rate is being considered.It’s perhaps not unexpected that in thecurrent economic climate, and withTreasury coffers rather bare, the sport,leisure, hospitality and tourism industrydidn’t receive much helpLITTLE HELP FOR BISL MEMBERSIt’s perhaps not unexpected that in the current economic climate,and with Treasury coffers rather bare, the sport, leisure,hospitality and tourism industry didn’t receive much help. Onthe other hand, this government does see encouraging tourismand the visitor economy as a way out of recession. There’sno doubt the industry is hurting. Debt was once so popularwith larger companies but is now a noose around their necks.Declines in asset values for property-based businesses is nothelping, but most BISL members are still generating cash, andas ever, cash is king. Their businesses are perfectly sound andit’s hoped many will emerge more strongly in time.BISL, like many other organizations, has been calling for amoratorium on legislation and regulations that cost industrymoney. Delaying CIL will help, but there’s still more to do in thisarea. The government is trying to do less, a trait bound to continueas we move towards an inevitable general election, whichmust take place by June 2010.Brigid Simmonds is chief executive of Business In Sportand Leisure (BISL) which represents the interests ofprivate sector companies in the sport and leisure industry.For more details contact 020 8780 2377 www.bisl.org ●ISSUE 3 2009 © cybertrek 2009Read Leisure Management online leisuremanagement.co.uk/digital 47