I have written to the Chancellor to raise my concerns about the future of pubs and call for a targeted reduction in VAT for pubs and hospitality businesses.
Ongoing cost of living pressures present a significant challenge for the hospitality sector. Pubs and hospitality businesses are facing sustained and increasing cost pressures, including rising prices and labour costs, higher energy bills, and changes to business rates relief. Many are operating on very narrow margins and need meaningful, targeted support to remain viable.
Pubs are far more than places to drink. They serve as community hubs, provide local employment, and play an important role in local economies – helping to ensure that money circulates within communities rather than being siphoned off to distant shareholders. They are also an integral part of our shared history and culture, forming a key part of the identity of towns and villages across the UK. Without meaningful intervention, there is a real risk of further closures, job losses, and the permanent loss of pubs and other important hospitality businesses that communities rely on.
I asked the Chancellor the following questions:
- Will you consider committing to a targeted reduction in VAT for pubs and hospitality businesses, to provide much needed relief during this challenging period?
- Will you commit to additional support measures aimed at addressing the structural cost pressures facing the sector, including the rising costs of inputs and the burden of business rates?