Graham Leadbitter has called on the Chancellor to cut VAT for hospitality businesses, arguing that cafes, restaurants and pubs need greater support after a difficult summer.
The Moray West, Nairn and Strathspey MP raised the issue in the House of Commons on Tuesday, 8 September, highlighting businesses affected by disruption from the recent Cairngorms wildfire.
Leadbitter told ministers that reducing hospitality VAT could provide businesses with an opportunity to recover while encouraging investment and economic growth.
Hospitality businesses currently pay VAT at the standard rate of 20%, with Leadbitter arguing that the burden is particularly difficult for businesses dependent on seasonal trade.
The MP has repeatedly called on the UK Government to reconsider the VAT rate faced by cafes, restaurants and other hospitality businesses.
During the summer recess, he met business owners across his constituency to discuss the pressures they are facing and gathered signatures for a petition calling for a reduction.
He intends to present that petition to the House of Commons at a later date.
The campaign has taken on additional significance locally following the Cairngorms wildfire, which disrupted businesses during an important period of summer trading.
Leadbitter argues that reducing VAT would allow businesses to retain more money for investment while providing some breathing space as they recover.
Graham Leadbitter MP said:
“The VAT burden imposed on cafes, restaurants and pubs is astronomical and only adds to the growing list of pressures faced by these businesses who are doing their best just to survive a difficult time.
“At 20% our hospitality businesses face one of the highest tax burdens in all of Europe and are being suffocated by the choices made by this Labour government.
“Many businesses here rely on seasonal trade and faced extreme disruption as a result of the summer wildfire, they need a chance to recover and rebuild.
“A reduction in VAT would provide a much-needed boost, enable reinvestment by these businesses and support economic growth.
“It’s time for the Chancellor to recognise that.”
