The government's decision to change VAT today is expected to cost the pub industry up to £36m.

According to research by the Association of Licensed Multiple Retailers (ALMR), pubs are expected to pay around £570 to re-print menus and re-programme tills, meaning the industry will have to fork out between £10m and £36m to make the changes. Chief executive Nick Bish said: “Publicans up and down the country have faced a week of chaos just because it has been decided that the 1st December is a nice neat date to implement the changes.  

“Most pubs and bars operate on a Sunday thru Saturday basis, while the support businesses that they rely upon to make the changes necessary will shut up shop at 5pm on Friday. This means that licensees will be particularly affected by Darling’s December disarray.   “The high street shops are offering 20 per cent and 40 per cent discounts and are struggling, so it’s hard to see how a measly 2.5 per cent change will bring more customers through our doors, and yet publicans are still going to have fork out to implement these changes.

"The biggest irony is while they have to re-configure their tills and reprint their menus they will be practically the only group who won’t benefit from Alistair Darling’s tinkering with VAT; the alcohol duty rise will swallow up any customer benefit.” Alex Salussola, Chairman of Glendola Leisure, owner of the famous Rainforest Café chain, added: "There seems to be a complete lack of understanding from Whitehall not only about the practical changes that need to be made, but also the time needed for publicans to understand the cost implications and fit them into the business planning.”