Highland MP Leads Campaign for Hospitality VAT Cut

Hospitality businesses across Moray, Nairn, Strathspey and the Highlands are being urged to support a campaign calling on the UK Government to reduce VAT and ease pressure on struggling firms.

Moray West, Nairn and Strathspey MP Graham Leadbitter is gathering signatures for a petition that he plans to present in the House of Commons, arguing that rising costs and recent policy changes are placing unsustainable pressure on businesses.

The campaign comes as pubs, restaurants, cafes and tourism operators continue to face rising food prices, increasing energy costs and higher employment expenses.

Mr Leadbitter says many businesses are being forced to make difficult decisions, including reducing staff numbers, freezing recruitment and increasing prices.

A separate public parliamentary petition calling for hospitality VAT to be reduced from 20 per cent to 10 per cent has already attracted more than 11,000 signatures, with Moray West, Nairn and Strathspey recording the highest number of supporters of any UK constituency.

The petition Mr Leadbitter intends to present to Parliament calls for urgent action on employer National Insurance contributions, VAT rates for hospitality businesses and wider business costs.

The issue is particularly significant in areas such as Aviemore, the Cairngorms and the wider Highlands, where tourism and hospitality play a major role in local economies.

Many businesses depend heavily on seasonal trade and say increasing costs are making it more difficult to operate sustainably throughout the year.

Graham Leadbitter MP said:

“This Labour government has pursued a raft of business-killing policies that are forcing cafes, pubs, and restaurants in my constituency and beyond to lay off staff, implement hiring freezes, raise prices, or shut up shop altogether.

“I want to make sure this matter is brought before the House of Commons as soon as possible, and I hope to welcome the support of as many local businesses as possible in doing that.

“Parliament needs to devote serious time to this issue, but while I work to secure a longer debate I’ll use the parliamentary mechanisms available to me to at least make sure a short case is made to better support business in the House of Commons.

“I’ve spoken to many businesses across this constituency who are being bled dry by a VAT regime that’s completely out of touch with the needs of our economy, and the approach taken by other European countries and tourist hotspots.

“It’s particularly important that in a seasonal tourist economy like areas I represent in Aviemore, the Cairngorms, and the Highlands, that businesses are afforded the opportunity to thrive year-round, but at present they aren’t.

“I always welcome the engagement of business owners and operators, but I would be particularly interested in hearing from them now about how UK government policies and inaction over rising food and energy costs are hurting them.”

The campaign adds to growing calls from across the hospitality sector for changes to tax and employment policies, with business groups warning that many firms continue to face significant financial pressures despite strong visitor demand in some parts of the country.

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Joseph Kennedy
Joseph Kennedy
Joseph Kennedy is a senior writer and editor at The Highland Times. He covers politics, business, and community affairs across the Highlands and Islands. His reporting focuses on stories that matter to local people while placing them in a wider national and international context.
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