Harrogate and Knaresborough MP Tom Gordon has called for an emergency cut to VAT for hospitality, entertainment and accommodation businesses.
Tom has warned that going out should not be an “unaffordable luxury” for local families.
The Liberal Democrat MP is backing his party’s proposal for a temporary reduction in VAT from 20% to 15% in next month’s Budget.
The party says the move would give a much-needed boost to pubs, restaurants and tourist attractions in Harrogate and Knaresborough, helping both businesses and customers struggling with the cost of living.
Liberal Democrat Deputy Leader and Treasury Spokesperson Daisy Cooper MP set out the plan during a speech on Wednesday 12th November.
Tom Gordon said:
“People all across Harrogate and Knaresborough work incredibly hard for their paycheck, but throughout this ever-spiralling cost of living crisis there is less and less disposable income left to go around.
“Small joys like Friday night takeaways and Saturday evenings at the cinema or bowling alley have become an unaffordable luxury for too many people. It’s devastating we have reached this point."
The £12bn package is designed to support high streets and put £270 back in people’s pockets, with measures including the VAT cut and changes to energy bills.
Under the proposals, the Renewables Obligation levy would be removed from electricity bills, reducing the typical annual energy cost by more than £90.
The Liberal Democrats say the plan would be funded by a new windfall tax on big banks, estimated to raise £30bn between now and 2030.
Tom Gordon said the changes are urgently needed to protect local venues, some of which are closing their doors under mounting financial pressures:
“Independent family businesses have been left to struggle, hammered by the jobs tax and higher business rates bills. So many iconic venues, like Lancaster’s Bakery and Sasso Italian Restaurant, have been forced to close, taking with them vital jobs and local community spaces.
“That’s why I am backing our plan for an emergency VAT cut for hospitality, as well as the Liberal Democrat plan to immediately cut energy bills by more than £90 a year. People across Harrogate and Knaresborough deserve to be able to afford their daily essentials, as well as the small joys that make life worth living. These proposals will put money back into people’s pockets and help them to do exactly that.”
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