Lib Dem MP warns going out should not be “unaffordable luxury” as party calls for emergency hospitality VAT cut for businesses in Harrogate and Knaresborough.

 Liberal Democrats urge the Chancellor to slash VAT by 5% for pubs,
restaurants, entertainment and accommodation venues as the party says too
many people have been “priced out” of even “small joys” like a restaurant
meal or a family day out.

As going out has become an increasingly “unaffordable luxury” for families across
Harrogate and Knaresborough, Tom Gordon, Liberal Democrat MP for Harrogate and
Knaresborough, has joined the party’s calls for an emergency 5% VAT cut for pubs,
restaurants and other hospitality and entertainment businesses at the Budget later
this month.

In a speech on Wednesday 12th November, Liberal Democrat Deputy Leader and Treasury
Spokesperson Daisy Cooper MP set out the party’s bold £12bn plan to tackle the cost of
living and support Britain’s high streets, putting £270 back in people's pockets.

As part of the plan, VAT would be immediately cut from 20% to 15% for hospitality,
accommodation and attractions, boosting struggling high streets and slashing prices for
hard-pressed families across Harrogate and Knaresborough.

Tom Gordon has said this plan would also boost footfall into pubs, restaurants, entertainment
venues and tourist attractions across Harrogate and Knaresborough, tackling the double
whammy of higher taxes and lower spending currently hammering UK food and drink
venues.

The party’s £12bn support  package also includes proposals to bring down sky-high energy
costs, by removing the Renewables Obligation levy currently charged on people’s electricity
bills. The move would reduce the typical energy bill by more than £90 a year, taking it down
to its second lowest level since the energy crisis began in 2022.

Tom has heard from many local businesses about the catastrophic impact of last year’s
budget. Across Harrogate and Knaresborough, hospitality venues are closing almost weekly.
Even long-established firms like Lancaster’s Bakery have been pushed to the brink,
struggling to balance soaring costs and mounting pressures.
The proposals would be funded by a new windfall tax on big banks, originally proposed by
the IPPR think tank, which could raise around £30bn in total between now and 2030.
Tom Gordon, Liberal Democrat MP for Harrogate and Knaresborough, 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. 

“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.”