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 Ƶ’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 Ƶ hospitality sector about the challenges they face and the opportunities that could be unlocked with the right policy support.
"Rising costs, staff shortages, and unfair taxes are pushing too many businesses to the brink," said Mr Aldridge.
"Reducing VAT and fixing the broken business rates system would give them the breathing room they desperately need to thrive again.”
He added: “Hospitality is the beating heart of Weston-super-Mare’s economy. Supporting it isn’t just good for business - it’s essential for our community and our town’s future.”
