Lib Dems urge VAT cut to support local pubs

Liberal Democrat MP Vikki Slade has joined calls for an emergency VAT cut to help struggling pubs, cafés and attractions in Dorset and across the UK.

The MP for Mid Dorset and North Poole said many businesses are fighting to stay open, warning that “so many pubs, cafés and attractions are struggling to stay afloat” as rising costs continue to bite.

The Liberal Democrats are urging the Chancellor to reduce VAT on hospitality sales from 20% to 15% for 17 months, arguing it would help revitalise high streets and lower costs for customers.

Vikki Slade, who previously ran her own hospitality business and worked in a pub, has long championed the sector. She has repeatedly raised the issue in Parliament and at party conferences, highlighting the pressure faced by small, independent operators.

In Mid Dorset and North Poole alone, 54 pubs and two breweries support around 1,600 jobs, but many are at risk as businesses face higher bills and falling footfall.

She said the Government’s failure to act is costing jobs and communities, with one pub closing every day across the country and more than 80,000 hospitality jobs lost since the last Budget.

The VAT proposal forms part of a wider £12 billion cost-of-living plan announced by Liberal Democrat Deputy Leader Daisy Cooper. The plan would also remove the Renewables Obligation levy from electricity bills, reducing costs by around £90 a year.

The package would be funded by a windfall tax on big banks, expected to raise £30 billion by 2030.

Vikki Slade said independent family businesses have been left to struggle. “People deserve to afford the occasional treat — and our pubs, cafés and restaurants deserve a fair chance to survive,” she said.

She added that cutting VAT would give businesses vital breathing space, help safeguard local jobs, and bring more visitors back to town centres.