Thomson Backs Calls for Chancellor to Reduce VAT for Under-Pressure Hospitality Sector

Thomson Backs Calls for Chancellor to Reduce VAT for Under-Pressure Hospitality Sector

Published date : 23 February, 2024

Gordon MP Richard Thomson has given his backing ahead of the UK Government’s Budget to calls for a reduction in the rate of VAT for the hospitality sector. 

The SNP MP has also added his name to a Motion on Parliament calling for the Chancellor of the Exchequer to implement a 5 per cent cut in VAT for under-pressure businesses in the sector. 


Commenting, Richard Thomson MP said: 

“The hospitality sector is a vital social as well as economic infrastructure across our communities.  These businesses give a sense of place, provide vital local social facilities, attract visitors, provide vital employment and have a real impact on the identity and vibrancy of our communities, both rural and urban.  

“The hospitality trade is under pressure from inflation, scarcity and cost of labour, skills shortages, energy and other input costs, all creating a uniquely challenging trading environment for the hospitality trade.  They need help now and a cut in their VAT rate as well being of some help would also bring the UK’s VAT rate in line with other European countries.  A cut in VAT would be proportionate, clean, easy to administer and an effective way to directly boost the bottom line of these crucial businesses. It would not require any complex bureaucracy and administration as a new grant scheme would, it would simply tax less, relative to the turnover of the business.  

“Trade organisations such as the Scottish License and Trade Association, Scottish Beer and Pub Association and Scottish Hospitality Group all support a cut of 5 per cent on VAT as the most straightforward and effective policy measure to help many small and local businesses get through the current crisis and I am happy to echo those calls.” 



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