2017-18. and it the worst they have been since about 2017 18. and it does not show any signs yet of picking up. we have had to put our prices up to deal with the over £100,000 extra electricity we are paying. you can see because we are paying. you can see because we have put those prices up, people are not looking to book, they are likely to go to places abroad, where it is cheaper. you know, in most of europe, the vat rate is less than 20%, in portugal it is about six or 7%. it s cheaper to go to those places than to the uk. n 7%. it s cheaper to go to those places than to the uk. i always feel for businesses places than to the uk. i always feel for businesses like places than to the uk. i always feel for businesses like yours, - places than to the uk. i always feel for businesses like yours, because | for businesses like yours, because you survive the pandemic, horrifically difficult, and now suddenly the war in ukraine and other factors, suddenly the war in ukraine and otherfactors, we have all of suddenly the war in ukraine and other factors, we have all of these other factors, we have all of these other economic circumstances that are clobbering you as well. can you survive? i are clobbering you as well. can you survive? ~ .., ~ are clobbering you as well. can you survive? ~ .. . ., ., survive? i think we can. we are in a fortunate position survive? i think we can. we are in a fortunate position where survive? i think we can. we are in a fortunate position where we - survive? i think we can. we are in a fortunate position where we have i fortunate position where we have spent the last 15, 16, 17 years, building up a bit of a war chest. so we can ride these storms. but it s a
Likely is that they would take some other measures. back in the early 1980s when the thatcher government came in, they cut the income tax rate but they raised the vat rate to offset it. so i wouldn t be surprised to see some offsetting measures, the government needs to be careful because if measures like raising vat, that will push up the rate of inflation. they are going to have to act carefully. whether these tax cuts can be sustained without a longer term increase in borrowing, which is what the afs have said, that will be a continue would by the financial markets. fik. will be a continue would by the financial markets. financial markets. 0k. dr andrew financial markets. 0k. dr andrew sentance, - financial markets. 0k. dr andrew sentance, thank | financial markets. 0k. dr i andrew sentance, thank you financial markets. 0k. dr- andrew sentance, thank you for your time. we appreciate it. afs is the institute for fiscal studies.
By a similar putting up the price of what we sell bya similaramount putting up the price of what we sell by a similar amount because otherwise it could be running at a loss. and lots of these pups have already been through all their savings through lockdown is. so we are facing a really serious threat of pubs going out of business. thousands of pubs that are actually really successful businesses. yeah, no reserves really successful businesses. yeah, no reserves or really successful businesses. yeah, no reserves or very really successful businesses. yeah, no reserves or very little really successful businesses. yeah, no reserves or very little reserve i no reserves or very little reserve because of the pandemics so they are caught between a rock and a hard place. the cost of energy etc customers meanwhile on the other side of that equation perhaps cutting back because they are affected by the cost of living crisis as well. what do you want to see the next prime minister, whoever thatis, see the next prime minister, whoever that is, liz truss or rishi sunak, do to help pub landlords and landladies? do to help pub landlords and landladies? ~ ., , ., , landladies? well, we really hope this is to- landladies? well, we really hope this is top of landladies? well, we really hope this is top of their landladies? well, we really hope this is top of their inbox. - landladies? well, we really hope this is top of their inbox. we - landladies? well, we really hope| this is top of their inbox. we have had a couple of weeks we haven t had anyone take in the series. there have been ministers imposed but they think they are outgoing not been making decisions but we need a price cap for energy. we need a cut in vat rate for not just food this cap for energy. we need a cut in vat rate for notjust food this time but alcohol as well so pubs can survive.
Commission, they re going to go to the wall because they are having to pay such high energy costs. ijust wonder if you believe that the government is actually thinking as laterally as it should in terms of all those other sectors within society that are affected by the problems that we have here. as a result, they haven t really been on top of the situation. i result, they haven t really been on top of the situation. top of the situation. i accept that the government top of the situation. i accept that the government can t top of the situation. i accept that the government can t change - top of the situation. i accept that the government can t change the j the government can t change the global price of energy. 0ne the government can t change the global price of energy. one of the things you can do is reduce the burden that these businesses are fighting. even before energy bills were going out vat, business rates were going out vat, business rates were causing big pressures for businesses, businesses, recording studios actually, one of the things government could be doing now is reducing that burden by looking at things like cutting the vat rate. they did it during the pandemic. so two years ago we were hit by a global pandemic and the government recognise these businesses were facing huge pressures. sylvia did not vat was cut by 25 foot tub is now gone up 20% and we are in crisis again. if the government wants to
Rishi sunak has promised he would scrap the 5% vat rate on energy bills for a year if the price cap goes above £3000 in the autumn if he becomes prime minister. it would save £160 a year. his rival in the conservative leadership contest, liz truss, described the move as desperate, accusing him of a screeching u turn . 0ur political correspondent david wallace lockhart has this report. rishi sunak emerges this morning with a new policy, a proposal to scrap vat on energy bills. but he s previously said such a move would disproportionately benefit wealthier households. and as we saw in his debate last night with liz truss, he s consistently argued against unfunded tax cuts. it s important what we leave our kids and our grandkids, and i think it is important to think about that inheritance. and i don t want to pass them a bill that we couldn t be bothered to pick up. 0k, and you made that. but with polls suggesting the former chancellor is the underdog, we now have a change in approach. allies of rishi sunak argue his new policy won t drive inflation.
Clip you played. i d be interested to know natalie thinks because this was one of the big ideas behind brexit that, as members of the european union, we could not vary our vat rate and chancellors would always say. our vat rate and chancellors would always say- - - our vat rate and chancellors would always say. boris johnson resisted it so much- always say. boris johnson resisted it so much. are always say. boris johnson resisted it so much. are saying always say. boris johnson resisted it so much. are saying we re - always say. boris johnson resisted it so much. are saying we re going l it so much. are saying we re going to do it will it so much. are saying we re going to do it will have it so much. are saying we re going to do it will have gone it so much. are saying we re going to do it will have gone down - it so much. are saying we re going to do it will have gone down well. to do it will have gone down well breaks at supporters. a concrete example of something that has changed. example of something that has chanced. ., ., example of something that has chanced. . ~ i. , example of something that has chanced. ., ,, ,, , . changed. thank you very much indeed for that. there changed. thank you very much indeed for that. there was changed. thank you very much indeed for that. there was a changed. thank you very much indeed for that. there was a lot changed. thank you very much indeed for that. there was a lot of for that. there was a lot of schadenfreude around the demise of borisjohnson but schadenfreude around the demise of boris johnson but they must schadenfreude around the demise of borisjohnson but they must be aware now seen the initial arguments in these first few days that, in fact, little is going to change within the conservative party with respect to its attitude. i conservative party with respect to its attitude- its attitude. i think that is right and i don t its attitude. i think that is right and i don t think its attitude. i think that is right and i don t think there - its attitude. i think that is right and i don t think there are - its attitude. i think that is right | and i don t think there are many expectations about change now. but we are likely to see is a change in form rather than substance. form is important. especially we are in the
And the uk has decided that frankly it can t wait and it needs to go ahead with this. it wants to introduce this legislation so it has the option to do things itself if necessary. this would allow ministers in london to go pretty far, to remove checks on goods that were not destined for northern ireland, to set state aid rules for northern ireland, to set the vat rate for northern ireland and to remove some of their oversight of european courts in policing the protocol, basically leaving most of the decisions to the british courts. and i think that is going to set up a pretty big row with brussels. as you say, the prime minister is on lbc this morning saying this is trivial but necessary, that these are just a few tweaks to make the protocol work better. but then you ve got the irish foreign minister simon coveney saying this morning that this is a low point in the uk s approach to brexit. there