VAT and the hospitality sector

Motion Text

That this House recognises the immense challenges facing the hospitality sector during the cost-of-living crisis; notes that the Government implemented a temporary cut of 5% on VAT for hospitality businesses during the pandemic; further notes that VAT is not devolved and can therefore only be set by the UK Government; adds that the UK is an outlier for having a flat rate of VAT across the whole economy unlike other European economies; notes that organisations such as the Scottish License and Trade Association, Scottish Beer and Pub Association and Scottish Hospitality Group support a cut of 5% on VAT as the most straightforward and effective policy measure to help many small and local businesses get through the current crisis; acknowledges that local hospitality businesses deliver an important social good to their communities as well as bring in vital income and jobs; and calls on the UK Government to implement a permanent cut of 5% on VAT for the hospitality sector to help hospitality businesses meet the challenges of the cost-of-living crisis.