A Cumbrian MP’s party is calling for a 5% cut in VAT in this month’s Budget to support the hospitality sector.
At a speech this week, Liberal Democrat Deputy leader Daisy Cooper called on the Chancellor to cut VAT from 20% to 15% to boost footfall in pubs, restaurants and entertainment venues.
The party said the move could be funded by a new windfall tax on big banks.
It comes following new research published this week from Cumbria Tourism which found that 14% of businesses in the industry are planning to sell up as a result of rising costs.
Meanwhile, one in four businesses say they will reduce staffing or stop recruiting.
Tim Farron, Liberal Democrat MP for Westmorland and Lonsdale, said:“60,000 people in Cumbria earn their living by working in the hospitality and tourism industry.
“It is by far our single biggest employer but it is under enormous strain due to rising costs.
“That’s why the Liberal Democrats are urging the Government to introduce a 5% cut in VAT for these businesses which are absolutely vital to our local economy.
“We think this is so important to underpin our most important industry, and strengthen our economy – and also to save our pubs which are at the heart of our communities.”
