Lib Dem MP welcomes party’s plan to slash VAT for Cumbrian hospitality businesses

Local MP Tim Farron and the Liberal Democrats are calling for a 5% cut in VAT in this month's Budget to support Cumbria’s hospitality sector.

At a speech yesterday, Lib Dem Deputy Leader Daisy Cooper called on the Chancellor to cut VAT from 20% to 15% to boost footfall in pubs, restaurants and entertainment venues.

The party says the move could be funded by a new windfall tax on big banks.

It comes following new research published this week from Cumbria Tourism which found that 14% of businesses in the industry are planning to sell up as a result of rising costs.

Meanwhile, one in four businesses say they will reduce staffing or stop recruiting.

Tim said: “60,000 people in Cumbria earn their living by working in the hospitality and tourism industry.

“It is by far our single biggest employer but it is under enormous strain due to rising costs.

“That’s why the Liberal Democrats are urging the Government to introduce a 5% cut in VAT for these businesses which are absolutely vital to our local economy.

“We think this is so important to underpin our most important industry, and strengthen our economy – and also to save our pubs which are at the heart of our communities.”