Shropshire Star

'Time to cut VAT to help pubs and restaurants' says Shropshire MP

More than 25 businesses in the Ludlow area have signed an MP's petition calling on the government to permanently reduce the rate of VAT on food and hot beverages sold in pubs.

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South Shropshire MP Stuart Anderson has presented the petition to the Chancellor following a meeting he had last month with representatives of the hospitality sector.

Currently, a 20 per cent VAT rate applies to food, drinks, and ticket, giving the UK one of the highest rates of VAT for hospitality in Europe.

In his letter to the Chancellor, Mr Anderson has called on the government to introduce a 12.5 per cent reduced rate for the hospitality and tourism sectors to support businesses and jobs.

In Ludlow and the surrounding areas, the leisure and hospitality sector support around 700 jobs, says Mr Anderson.

Mr Anderson MP said: "Across my constituency of South Shropshire, historic market towns like Ludlow provide a stunning backdrop for our pubs and restaurants.

“So, it was excellent to meet representatives from Ludlow’s hospitality sector.

“This sector has huge potential for future growth, helping to unlock rural prosperity, upskilling local people, and bringing communities together.

“Yet, the representatives that I met have told me that they continue to be held back by increased costs and excessive taxation.

“They have said that cutting the rate of VAT on food and hot beverages sold in their venues would be a huge boost – helping to keep prices down and supporting jobs in our rural economy. They are not asking for special treatment but a fair playing field with supermarkets and increased online sales. I hope the Chancellor will accept this request.”

In his letter, Stuart added that the hospitality industry is not asking for special treatment but a fair playing field with supermarkets and online sales.

This would allow the sector to pay higher wages, restrict price increases to customers, and invest in the local area.

He argues that it would encourage people to go out more for meals, buy hot takeaway food, or stay in one of the area's hostelries.

More than 25 businesses from the Ludlow area have signed Stuart’s petition, including: The Queens; Kin Kitchen; Csons; Sourced Pizza; Charleton Arms; The Fish House; Taste @ No 1; The Bull Ring Tavern; The Bakehouse; The Compasses; Mortimers; Café V; Jup Jup Thai; The French Pantry; The Corner House; The Feathers Hotel; The Bull Hotel; Aragons; The George; The Buttery; The Blue Boar; Bill’s Kitchen; The Angel; The Cottage Café; Parkway; The Church Inn; and Twigs.

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