Bath’s MP, Wera Hobhouse, has called for an emergency reduction in VAT to support local businesses severely impacted by the ongoing cost-of-living crisis. The Liberal Democrat representative advocates for an immediate 5% VAT cut on pubs, restaurants, entertainment, and accommodation sectors ahead of the upcoming budget on November 26.
On November 12, Liberal Democrat Deputy Leader and Treasury Spokesperson Daisy Cooper outlined the party’s comprehensive £12 billion plan aimed at easing the financial strain on British households and revitalizing high streets nationwide. Central to this plan is reducing VAT from 20% to 15% in hospitality-related industries, a measure that Hobhouse strongly supports.
“People across Bath work tirelessly, yet the relentless cost-of-living crisis leaves less disposable income for everyday pleasures,” Hobhouse stated. “Simple treats like takeaways or nights out at the cinema have become unattainable luxuries for many. It’s heartbreaking that we’ve come to this.”
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Hobhouse emphasized that small, independent family businesses are under severe pressure due to increased taxes and rising business rates. She pointed to closures of iconic venues like Moles, which not only eliminate vital jobs but also diminish communal spaces.
“This emergency VAT cut, along with plans to reduce energy bills by over £90 a year, would help Bath residents afford essentials and enjoy the small joys that enrich life,” she added.
The push for a VAT reduction follows a challenging year for Bath’s businesses. Gathering insights from local establishments, Somerset Live highlighted struggles faced by Batheaston’s Gather, a popular spot frequented by celebrities including Jameela Jamil and Andrew Lincoln. Despite loyal customers, business rates and limited public awareness pose ongoing obstacles.
Alex Peters, Director of Bath Pizza Co and Green Park Station Brasserie, echoed Hobhouse’s concerns: “The cost-of-living crisis is driving fewer customers through our doors—not through lack of desire, but simply because they can’t afford it. Combined with rising employer national insurance contributions, running an independent business has become increasingly difficult.”
Peters stressed that these financial pressures are stifling growth and ambition in the hospitality sector, which has expanded its economic contribution from £73 billion to £93 billion over six years. “The government is literally biting the hand that feeds them,” he said.
He concluded, “Cutting VAT would alleviate pressure on both customers and businesses alike and is a straightforward measure that could keep Bath’s cherished pubs, restaurants, and entertainment venues afloat.”