Conservative MPs Demand VAT Cut For Struggling Pubs And Restaurants

A letter signed by 42 Conservative MPs has called for Chancellor Jeremy Hunt to reform VAT and Business Rates for hospitality businesses in the Spring Budget.

Senior ministers have suggested Government plans to cut taxes in the 6 March Budget as it aims to win back disaffected voters. The Budget could be the last economic announcement from Government prior to the next general election, which must be called this year.

Simon Jupp, Conservative MP for East Devon, who met Hunt alongside a number of MPs who signed his letter, is hopeful the government will consider reducing taxes for pubs and restaurants which have been doubly hit by Covid and the cost of living crisis.  

The list of signatories includes former cabinet minister Thérèse Coffey, Tim Loughton, Alicia Kearns, Tobias Ellwood, David Mundell and Stephen Crabb.

The letter, which was sent to the Chancellor on Tuesday, has asked the Treasury to address the “inequitable business rates regime” that means hospitality businesses pay £2.4billion more in tax than online outlets.

MPs who have signed the letter have backed the Hospitality Sector Council’s call for a temporary cut in hospitality & tourism VAT to unlock investment.

The letter said the hospitality industry had been hit by “sustained pressures” in recent years which included high energy bills, rising wage costs and a challenging recruitment environment.

Tory MPs argue that by using a revised tax framework, the hospitality industry could grow by an annual rate of six per cent over the next five years. 

Jupp, Chair of the All-Party Parliamentary Group for Hospitality and Tourism, told PoliticsHome reforming and reducing VAT and Business Rates for hospitality businesses will boost the industry.

“As Chair of the cross-party