Restaurants sceptical over 'garlic and gherkins' plan

Restaurants are doubtful about the proposed “garlic and gherkins” measures

Morgan Austin had hoped for stronger backing for hospitality firms, including a cut in VAT

Garlic, gherkins and plant-based milk are among more than 100 products expected to get cheaper under measures announced in the Budget.

The Treasury said scrapping import tariffs on dozens of items would save the average household around £21 a year on its food shopping.

But some businesses have questioned how much of a difference the changes will actually make, arguing that VAT cuts or steps to reduce the cost of hiring staff would have been more useful.

Morgan Austin, from burger chain Burgerism, which has six main locations and first opened in Salford in 2018, said removing tariffs on gherkins was welcome news.

“Really appreciate the gherkins - that is fantastic for us,” said the 26-year-old operations manager.

However, she said she would have preferred more substantial support for hospitality businesses, including a reduction in VAT.

Austin said rises in the minimum wage and employer National Insurance Contributions after the previous Budget had cost Burgerism about £150,000 a year.

“We're not a massive business,” she said. “That is a big hit to us, and that could be a whole new site for us.

“We would love to open more sites, have more jobs going for people, hire new young people, but things like that make it really difficult sometimes.”

Austin also said the measures did not go far enough to help medium-sized businesses that want to grow.

“Everyone loves a pickle, except for the 25% of people that take them off the burgers,” she said.

“I’m sure, for other businesses though, they would have loved to have seen some other things that aren't pickles, because I think pickles can be quite niche.”

Hassan Zahid thinks cutting tariffs on meat would be more useful

Hassan Zahid, who runs the American-Mexican fusion street food business Fuego 1987 in Manchester, said the tariff changes would have only a “really minor” effect.

The 29-year-old said: “It would have helped if they reduced tariffs on raw products such as meat or chicken - the items we use as a bulk amount.

“That would help us to gain some profits rather than reducing it on garlic.”

Gavin Williams, co-owner of Mattina coffee shop in Salford, Greater Manchester, said: “I think it's a classic Andy Burnham style - we're going to do loads to help you out, but actually, when you look at the fine detail, the impact is nothing.”

Although Mattina uses large amounts of plant-based milk, Williams said the changes would not help his business because its suppliers are based in the UK and are therefore not subject to import tariffs.

“Our almond milk comes from Southport, which is a few miles down the road. Our oat milk comes from Milton Keynes,” Williams explained.

“So, we already produce these goods in the UK. The tariff doesn't include import goods on the raw ingredients. So, what difference is it going to make? Zero.”

He also said a VAT cut would make a bigger difference to independent hospitality businesses.

“You can't keep increasing the minimum wage, increasing National Insurance Contributions, increasing pension contributions, increasing business rates, increasing energy, increasing everything, and not give us something back,” he complained.

“It’s getting harder and harder and harder to just maintain opening a business.”