Emergency VAT Cut to Save Our High Streets and Help Families Cope

Right now, people across North East Fife – and across the UK – are being squeezed from every direction. Families are working incredibly hard, yet sky-high bills and rising food costs mean there’s often very little left at the end of the month. At the same time, our high streets are struggling, with cherished pubs, cafés, restaurants and entertainment venues fighting to keep their doors open.

That’s why, ahead of the Budget, I’m calling for an emergency 5% VAT cut for pubs, restaurants, accommodation providers, attractions and other hospitality and entertainment businesses. This is a key part of the Liberal Democrats’ £12 billion plan to tackle both the cost of living and the cost of doing business.

We’re pairing this with a call for the Chancellor to reduce household energy bills by removing the current “renewables obligation” levy. Combined, these measures would save a typical family around £270 over the next eighteen months.

Crucially, this plan is fully funded. It would be paid for by a new windfall tax on the big banks, a proposal originally developed by the IPPR, which could raise around £30 billion between now and 2030. Less than half of that would be needed to fund the VAT cut and replace the renewables obligation levy.

This support is desperately needed. Research from More in Common shows that almost two in three people now see restaurant meals as unaffordable. Over half say a night out at the pub is out of reach for the average person, and nearly as many say the same about going to the cinema. These simple pleasures – the ones that make life worth living – are fast becoming luxuries.

Here in North East Fife, I’ve seen first hand how hard-hit our high street businesses have been. Labour’s job taxes and rising costs have piled pressure on employers, leaving too many treasured local venues unable to survive. When a pub or café closes its doors, we don’t just lose a business – we lose jobs, meeting places and part of the fabric of our communities.

That’s why the Liberal Democrats’ plan is vital. Cutting VAT for hospitality while reducing energy bills for households would put money back in people’s pockets, help them heat their homes, and support them to enjoy the small things that lift our spirits. It would also give local businesses the boost they need to survive and grow.

This is about restoring confidence, revitalising our high streets and giving the country a much-needed morale boost. I’ll continue pressing the Chancellor to take up these proposals, because families and businesses in North East Fife need action now.