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Retail & Consumer

West Country MPs call for tax cut for pubs and restaurants ahead of Autumn Budget

The cross-party group has also urged the government to 'deliver on its commitment' to reform business rates

Dan Aldridge MP is among ministers calling for a VAT cut for pubs and restaurants(Image: Handout)

West Country MPs are among ministers urging the Chancellor to cut VAT for pubs, hotels and restaurants in the upcoming Budget.

The cross-party letter, signed by members of All-Party Parliamentary Group for Hospitality and Tourism, also called for business rates reform and recognition of the sector’s role in the º£½ÇÊÓÆµ’s growth and skills strategy.

The 27 signatories included Dan Aldridge, Labour MP for Weston-super-Mare who is also the group's co-chair; Sarah Dyke, Liberal Democrat MP for Glastonbury and Somerton; and Caroline Voaden, Liberal Democrat MP for South Devon.

In the joint letter, the group said there was an "urgent need" to reduce VAT from 20% and reform the business rates system, arguing the current tax regime was "stifling" investment and job creation.

It added that reforming business rates would provide "much-needed certainty" for hospitality and tourism businesses. It also warned that pressures were likely to worsen with the forthcoming Employment Rights Bill.

“From rural pubs and seaside hotels to city-centre restaurants and visitor attractions, the message was consistent: rising costs and a high tax burden are holding back investment, job creation and the recovery of local high streets," the letter said.

"With the right framework in place, particularly on business rates, the hospitality and tourism sector can once again be at the heart of the country’s growth mission: revitalising high streets, creating jobs and getting people back into work."

The letter follows a series of sessions held by the group with businesses from across the º£½ÇÊÓÆµ hospitality sector about the challenges they face and the opportunities that could be unlocked with the right policy support.