MP MANUELA Perteghella says going out should not be an “unaffordable luxury” as she calls for an emergency hospitality VAT cut for businesses in her constituency.
The Stratford MP and her fellow Liberal Democrats are urging chancellor Rachel Reeves to slash VAT by five per cent for pubs, restaurants, entertainment and accommodation venues at the budget this week as the party says too many people have been “priced out” of even “small joys” like a restaurant meal or a family day out.
In a speech on Wednesday November 12, Liberal Democrat deputy leader and treasury spokesperson Daisy Cooper set out the party’s bold £12 billion plan to tackle the cost of living and support Britain’s high streets.
As part of the plan, VAT would be immediately cut from 20 per cent to 15 per cent for hospitality, accommodation and attractions, boosting struggling high streets and slashing prices for people across Stratford.
Dr Perteghella has said this plan would also boost footfall into pubs, restaurants, entertainment venues and tourist attractions across Stratford, tackling the double whammy of higher taxes and lower spending currently hammering UK food and drink venues.
She continued: “Stratford’s pubs, restaurants and theatres are the heart of our community and a vital part of our local economy. They bring people together, provide thousands of jobs and attract visitors from all over the world. The chancellor must cut VAT for hospitality to 15 per cent in the Autumn Budget to give these businesses a fighting chance this winter.
“Hospitality has been hit harder than any other sector by rising costs and the Government’s punitive National Insurance hike. A VAT cut would put money back in people’s pockets, help local businesses keep their staff and protect the places that nourish the local economy.
“Independent family businesses have been left to struggle, hammered by the jobs tax and higher business rates bills. So many iconic venues, like the much-loved brasserie Edward Moon brasserie have closed, taking with them vital jobs and local community spaces.”
The proposals would be funded by a new windfall tax on big banks, originally proposed by the IPPR think tank, which could raise around £30 billion in total between now and 2030.
Dr Perteghella added: “People all across Stratford work incredibly hard for their pay, but throughout this ever-spiralling cost of living crisis there is less and less disposable income left to go around.
“Small joys like Friday night takeaways and Saturday evenings at the cinema or bowling alley have become an unaffordable luxury for too many people. It’s devastating we have reached this point.”
