Joint MP letter calls for emergency VAT cut to protect hospitality and tourism
A Shropshire Liberal Democrat MP has joined together with more than 50 others from the party to call on the Government to expand its business rates relief package beyond pubs.
In a joint letter to Chancellor Rachel Reeves, North Shropshire MP, Helen Morgan, warned that large parts of the hospitality and tourism sector were being “neglected”.
The group of signatories urged the Government to extend support to hospitality, retail, leisure and tourism businesses, including cafés, restaurants, hotels, B&Bs and visitor attractions.
Their calls followed an announcement on Tuesday that pubs would receive a 15% discount on their Business Rates, which some described as a ‘soft U-turn’ on previous plans made in the Budget to end Business Rates relief.
Speaking in Parliament, Helen said the discount would not help shops or hotels such as the Pen-y-Dyffryn near Oswestry, whose rateable value she said had nearly quadrupled.
While welcoming the £100 million package announced for pubs and music venues, Helen joined others in highlighting how a lack of firm support for the wider tourism sector was damaging.
Helen Morgan MP said: “Tourism is the lifeblood of our communities and the backbone of our economy, yet family-run businesses have suffered through years of neglect. With costs spiralling out of control, the industry simply cannot afford the hammer blow of these business rate hikes.
“The Chancellor is picking winners and losers with a half-baked relief package. We need an emergency VAT cut now to protect the entire hospitality sector before it collapses.”
Helen warned that rising costs and falling footfall have left many “struggling to survive”.
Helen added: “Hotels have been offered little more than a vague promise to review how they’re valued, while restaurants, cafés, B&Bs and attractions like holiday parks, theme parks and zoos are being left completely in the lurch. Some are facing five‑figure business rates bills simply because of recent hikes.”
In the letter, MPs call for a sector-wide solution, including delivery of the full 20p business rates discount legislated for last year and an emergency, fully funded 5% VAT cut for hospitality, accommodation and attractions until April 2027.
Helen added: “If the Government is serious about standing up for small businesses, it must move beyond piecemeal support. A full business rates discount and a temporary VAT cut are the only measures that will provide real relief across the entire industry and keep vital tourism hubs afloat.”
The MPs have urged ministers to respond urgently and commit to a support package that “reflects the true scale of the crisis” facing local economies.
