The Raising the Bar report from the All-Party Parliamentary Group on Pubs has been published after receiving more than 15,000 responses from publicans, consumers, industry groups and academics about how the industry has been affected by Covid and associated lockdown periods.

It said VAT “was by far the issue raised most frequently, with businesses making the point that the timing of VAT cuts being introduced meant pubs were either closed, or operating at very limited capacity for the majority of this period”.

The currently reduced 12.5 per cent VAT rate is due to end on March 31 before reverting the usual 20 per cent rate from April.

Pubs need extra Government support to recover from the pandemic, MPs have suggested.

Businesses and trade organisations linked to the pub industry have called for an extension - an idea backed by the APPG.

Its recommendation said a potential extension for hospitality businesses should “include all drinks to ensure that wet-led pubs can also benefit from this measure”.

Pubs APPG Chair and Warrington North MP Charlotte Nichols said: “The Pubs APPG Inquiry received thousands of responses showing the passion, creativity, commitment, and resilience of licensees, pub staff, consumers, and industry representatives.

“With support from Government, pubs are uniquely positioned to drive economic recovery from the pandemic, while continuing to play a key role in fighting loneliness and encouraging community cohesion.

“However, it’s clear that policymakers must take action to address the roadblocks to recovery identified in the Raising the Bar report, and I look forward to working with colleagues in Parliament to ensure pubs receive the support they need.”

Chairman of the Campaign for Real Ale, the consumer rights organisation that provides secretariat services to the Pubs APPG, Nik Antona said: “This is a crucial moment for pubs, and I hope Government will see this report as an opportunity to raise the bar.

“Without legislative reform and greater investment in the trade, thousands of pubs across the country face an uncertain future.

“We need action from the Government to keep these vital businesses, and local communities they serve, thriving.”

While the full impact of the pandemic is still not clear, the report said that early indications are that five per cent of pub businesses (2,500) closed in 2020 alone, and almost 400 have been lost or redeveloped, averaging at six per week.

The report also raised concerns that many pub owners have taken on high levels of debt during the pandemic, with widespread concern about the repayment of the Government’s Bounce Back Loans.

The report said: “Bounce Back Loans were a key concern for licensees, many of whom had expected to return to normal trading levels far sooner than has been possible.

“Ongoing debt could see the on-trade stifled in both the long and short term and addressing this swiftly will create far greater returns in investment, innovation, employment, and tax revenues.”

The report recommends that the existing ‘pay as you grow’ scheme for Bounce Back Loans is revised by the Government to be more reflective of current pub incomes.

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Extend VAT cut to help nation's pubs recover from pandemic, MPs urge