James Murray

James Murray

Labour (Co-op) — Ealing North

Speaking in the House of Commons on 12 November 2026

Debate

Hospitality Sector VAT: Local Economies, Employment and Growth

Contribution

The hon. Lady is shaking her head, implying that no pubs in her constituency benefit from that. I will happily check and get back to her to confirm that the 20% cut does apply in her constituency. Also, more widely, we are having a real-terms freeze for all business rates for retail, hospitality and leisure. I think it is clear that retail, hospitality and leisure properties of all sizes benefit from a real-terms freeze, a cut or being taken out altogether. Businesses in the sector have had to contend with a number of challenges in recent years, including higher operating costs. Members have spoken about the impact that that has had. The Government take those concerns seriously. We continue to engage with the sector about what support we can give. A number of Members have made the case for reducing the current rate of VAT to 10%, and we have considered that case carefully. Let me be clear that we recognise that reducing the rate of VAT would provide a benefit to affected hospitality businesses. Businesses would make their own decisions about how to use that benefit: whether to strengthen their finances, support employment and investment, or reduce prices for customers. As the Minister responsible for the tax system, I have to consider the significant fiscal implications that such a change would have.

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