VAT and the hospitality sector

That this House recognises the continuing challenges facing the hospitality sector during the cost of living crisis; notes that the Government implemented a temporary cut of 5% on VAT for hospitality businesses during the pandemic; further notes that VAT is not devolved and can therefore only be set by the UK Government; notes that the UK is an outlier for having a higher rate of VAT for the hospitality sector compared to other European economies; further notes that organisations such as the Scottish Licensed Trade Association, Scottish Beer and Pub Association and Scottish Hospitality Group support a cut of 5% on VAT as the most straightforward and effective policy measure to help many small and local businesses; recognises businesses such as the Wee Restaurant in North Queensferry, whose team work hard everyday to serve their loyal customer base against the competing demands of inflation, higher energy costs and the cost and availability of raw materials; and calls on the Government to implement a permanent cut of 5% on VAT to help hospitality businesses meet the challenges of the cost of living crisis, to give them some financial breathing space after the covid-19 pandemic and to remain sustainable in the future so that they can continue to contribute to the wider economy.