John Lamont

It is a pleasure to serve with you in the Chair, Dr Huq. Whether it is a seaside town in Lancashire or on the Berwickshire coast, the story is much the same. In the coastal town of Eyemouth, next to the harbour, stands Giacopazzi’s, which was established in 1898 by Lorenzo Giacopazzi. Arriving in Scotland on his way to America, he instead decided to stay on the Scottish coast to seek his fortune. The business has been run by his family ever since, becoming famous for its fish and chips and award-winning ice cream. The family has recently invested in a new ice cream factory, a bar and bistro, and holiday accommodation. However, Peter Giacopazzi has written to me, as have many hospitality businesses across my constituency, to say that pressure has never been greater. The costs of employer national insurance, wages, energy and ingredients have all gone up. On top of that sits VAT at 20%. In the borders, hospitality is the lifeblood of the high street. From the hotels of Kelso and Melrose to the cafés of Hawick and Galashiels and the bed and breakfasts at St Abbs and Coldingham, these businesses are often a town’s largest private employers, providing our young people with the opportunity to take that all-important first step into the world of work. At the same time, many of these businesses in the Scottish Borders, Scotland and across the UK are competing for customers who might otherwise go to Europe. Our hospitality VAT rate is the second highest in Europe. France, Italy and Spain charge 10%, Ireland charges 9%, and Germany charges only 7%. The consequences are bleak. UKHospitality reports that three hospitality businesses have closed every day this year, and nearly 100,000 jobs have been lost across the sector. There is no doubt that lowering the rate of VAT would help save jobs.