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Lord Pitt-Watson (Lab)

Speaking in the House of Lords on 14 September 2026

Debate

Hospitality Industry: VAT

Contribution

I thank the noble Lord for that question. It brings me back to the fundamental question that we have to think about, which is that we can live only within our means. A VAT cut of 10 percentage points would cost £11 billion. That is about the same cost as the Royal Navy. We need to ask ourselves what the priorities will be. As we look to the Budget, I know that the Chancellor will be looking at absolutely everything, but I thought that benchmark might be helpful for your Lordships’ House.

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