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Mr Paul Kohler

Mr Paul Kohler

Liberal Democrat — Wimbledon

Speaking in the House of Commons on 12 November 2026

Debate

Hospitality Sector VAT: Local Economies, Employment and Growth

Contribution

The issue is absolutely now, not the past. In Spain, hospitality pays a reduced rate of 10%, while across our one land border the Republic of Ireland has reduced VAT on hospitality to as low as 9%. We know that VAT cuts do work because we have done it before, during the pandemic. This summer, we learned that lower VAT brings more people through the door and helps struggling businesses. Minister, will the Treasury commission a full cost-benefit analysis of reducing VAT on hospitality—not just the headline cost, but also the return in jobs, growth and lower welfare spending? The Night Time Industries Association has produced an analysis suggesting that it would have a net positive effect on the Government’s fiscal position—I think that is what we call a win-win. In short, hospitality is in crisis. There is no point in the Government giving a little with one hand while continuing to take far more with the other. The time has come for real action, not warm words.
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