Bath’s Liberal Democrat MP Wera Hobhouse has called for an immediate VAT cut to support struggling local businesses hammered by the ongoing cost-of-living crisis. She is urging the government to reduce VAT by 5% for pubs, restaurants, entertainment, and accommodation venues ahead of the upcoming budget on Wednesday, November 26.
Following a speech by Liberal Democrat Deputy Leader and Treasury Spokesperson Daisy Cooper MP on November 12, the party unveiled a £12 billion plan aimed at easing the cost of living and revitalizing Britain’s high streets. Central to this proposal is a VAT cut from 20% to 15% on hospitality, accommodation, and attractions, which they claim could put £270 back into people’s pockets.
Hobhouse emphasized the strain on many in Bath, stating, “People work incredibly hard but are now left with less disposable income due to rising living costs. Simple pleasures like Friday night takeaways or a night out at the cinema have become unaffordable luxuries for too many.”
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She highlighted the plight of independent family businesses facing soaring taxes and business rates, which have forced iconic venues like Moles to close, costing jobs and community spaces. “That’s why I support our plan for an emergency VAT cut alongside measures to reduce energy bills by over £90 a year,” Hobhouse added. “Everyone in Bath deserves to afford essentials and enjoy small joys that enrich life.”
The call for VAT relief comes after a challenging year for many Bath businesses. Gather in Batheaston, a popular spot frequented by celebrities such as Jameela Jamil and Andrew Lincoln, has struggled to attract wider local awareness despite loyal customers. “If more people knew we were here, they would come,” shared the team.
Similarly, Alex Peters, Director of Bath Pizza Co and Green Park Station Brasserie, backed Hobhouse’s campaign, saying, “Fewer customers visit because they simply can’t afford it now. Combined with increased employer national insurance contributions, running an independent business is tougher than ever.”
Peters noted the hospitality sector’s growth, increasing its economic contribution from £73 billion to £93 billion in six years, yet cautioned, “The Government is literally biting the hand that feeds them! Cutting VAT would ease financial pressure on both customers and businesses and help preserve Bath’s cherished hospitality scene.”