Moray West, Nairn and Strathspey MP Graham Leadbitter has backed calls for a reduction in VAT for hospitality businesses, urging the UK Government to give the sector “a fighting chance”.
A petition lodged at the UK Parliament calling for a VAT cut has attracted significant support in his constituency, which now has the second highest number of signatories in the country.
Mr Leadbitter said rising food and energy costs, combined with squeezed household incomes during the cost of living crisis, have placed intense pressure on pubs, cafes and restaurants.
He also pointed to wider economic challenges, including rising unemployment across the UK, which he linked in part to the Chancellor’s recent increase in employer national insurance contributions.
Although Scotland’s unemployment rate currently stands at 3.8 per cent compared to 5.2 per cent across the UK, the SNP has warned that UK Government policy decisions risk undermining jobs and economic progress north of the border.
The party pledged in its 2024 manifesto to support a lower rate of VAT for hospitality businesses.
Commenting on the campaign, Graham Leadbitter MP said:
“Whether it’s pubs, cafes, or restaurants, our hospitality businesses, especially in communities like the ones I represent, are the beating hearts of towns and villages.
“They’re far more than just what they sell and make, and it’s about time their contribution to our communities is recognised by a UK government that has instead so far destroyed jobs and opportunities across the country with its policies.
“They need to give hospitality businesses a fighting chance to survive through this cost of living crisis, which isn’t just driving up the cost of food and energy but squeezing customer’s incomes and forcing them to spend less eating out.
“A cut on VAT would go a long way towards helping businesses bring back customers who are watching their spending, and undo the damage caused by the Chancellor’s national insurance hikes and inability to get a grip of inflation.
“I’m proud to back this campaign and will use every means at my disposal to have this raised in Parliament.”
The petition remains open as campaigners continue to press for action from the Treasury
