The Green Party has pledged to reduce the rate of hospitality VAT in its general election manifesto.
The proposal is part of the Green Party’s five-point plan:
* Raise over £50 billion through taxing wealth fairly
* A large-scale green investment programme to transform our economy
* Billions more for health and social care;
* Funds for local authorities to invest in warm, affordable to heat homes
* VAT exemption for hospitality and cultural businesses
Green Party co-leader Carla Denyer said:
“We need to give a hand to hard-pressed small businesses in the hospitality sector which have been hit by Covid and the cost-of-living crisis. The temporary 5% VAT rate should continue and extend to all activities in the cultural and sports sectors, and leisure activities. Indeed, we would be more ambitious, zero-rating all these activities for the life of the next Parliament.
CAMRA Chairman Nik Antona said:
“CAMRA welcomes the Green Party’s continuing commitment to reducing VAT for the hospitality sector alongside their proposals to review planning regulations to protect the night-time economy and give local councils the powers to exempt socially essential local enterprises from paying business rates – which we would argue should definitely apply to pubs which are a vital part of our social fabric.
“We look forward to working with Green parliamentarians and with the next UK Government to explore how these ideas could be implemented to safeguard pubs and social clubs at the heart of community life up and down the country.
“This should include cutting the rate of VAT specifically on beer and cider sold in pubs in recognition of their community value, including for traditional ‘wet-led’ pubs that do not serve food. This would help to reduce the rate of pub and brewery closures which deprive consumers of their much-valued locals.”
