Tom Gordon, the Liberal Democrat MP for Harrogate and Knaresborough, has hit the ground running in Parliament this week, raising local concerns with the First Secretary of State following his roundtable local hospitality representatives from across the local area.
The local MP questioned the Minister Lou Haigh on the Burnham Government’s plans to remove barriers to local businesses and promote “pro-business culture”.
Mr Gordon raised the high VAT rates discussed by the owners of local cafes, bars, hotel and pubs at the roundtable held at North Bar last month and asked whether the Government would cut the tax.
The Minister responded that reducing burdens and taxes for hospitality businesses in particular was a priority but did not address Mr Gordon’s specific request on VAT.
He has pledged to keep campaigning for the cut.
Tom said:
We need a VAT cut. An emergency 5% VAT cut on hospitality, accommodation and attractions is a key part of the Lib Dem plan to Save our Highstreets.
It would boost local pubs, restaurants and entertainment venues while saving people money on the occasional extra.
Simon Cotton, Managing Director of HRH Group, that includes The Yorkshire Hotel and The Fat Badger:
I am grateful to our MP Tom Gordon for taking the time to arrange an opportunity for local hospitality businesses to meet with him so he could hear the ongoing issues facing our industry, most of which are driven by government decisions which is impacting opportunities for growth.
Whilst some cost increases are as a result of world issues driving up energy and food costs, the increases in NMW and NICS have been considerable and along with major hikes in Business rates, it continues to get harder and harder to turn a profit and we are seeing too many businesses closing their doors due to this.
One quick way to support businesses would be a reduction in VAT for hospitality to bring us in line with most other European countries who’ve done exactly this to support the industry.
I also suggested Tom could ask the government for a short sharp boost early in the new year similar to the Eat Out to Help out scheme of summer 2020 which the public got behind overnight and I believe something similar could be run in January/February when traditionally hospitality businesses run at a loss.
