PLAID CYMRU MP for Ceredigion Ben Lake has called on the Chancellor to extend the VAT lifeline for hospitality businesses for another twelve months to help with the economic recovery as we emerge from Covid.
In July, the UK government cut VAT on food, accommodation, and attractions to 5%, which was extended until the end of March.
Ben Lake MP says that keeping VAT at 5% would provide much needed certainty for struggling businesses and help the hospitality industry return to profitability, safeguarding jobs across Ceredigion.
A petition to Parliament calling for the continuation of the rate relief has already received over six thousand signatures.
Ben Lake MP said: “In my recent meetings with hospitality businesses across Ceredigion, business owners have told me that that they are deeply concerned about their prospects for survival. These businesses urgently need the UK Government to offer longer-term certainty to help the hospitality sector recover, including the extension of the VAT reduction scheme into 2022.
“In a recent Westminster debate, as well as extending the VAT relief to the hospitality sector, I supported calls for the Treasury to provide additional funds so that businesses can be supported to bounce back once restrictions have been eased, and to pause employer national insurance contributions for furloughed employees as a way of alleviating the burden on businesses that are still, in many instances, required by law to close. I also urged the Treasury to consider extending the business rates holiday for the forthcoming financial year.
“Not only would these support measures give businesses a fighting chance to get through this crisis, to grow and create jobs once again, it would also avoid the terrible situation whereby businesses that have previously received Government support are forced to close for good – leaving their employees without a job and previous Government support in vain.”