STIRLING MP Alyn Smith doubled down on his commitment to pursuing a VAT cut for hospitality during a recent meeting with the Scottish Licensed Trade Association (SLTA).
Smith had already written to prime minister Rishi Sunak to make the case for a VAT reduction, arguing that it would be ‘a far more economically and socially productive measure’ than cutting taxes for wealthy individuals.
Although the UK Government was not receptive, Smith said he is optimistic UK ministers can still be persuaded to take action.
Speaking to SLTA spokesman Paul Waterson and managing director Colin Wilkinson at the Golden Lion Hotel in Stirling, Smith said there is ‘an obvious need’ for a VAT cut.
“The beauty of the VAT cut for me is that, instead of the Eat Out to Help Out scheme, which actually cost as much to administer as it did to get money through to you, the cut to VAT means that from day one your bottom line changes,” said Smith.
“It’s quick, it’s easy, it’s targeted. It’s also much more in the European mainstream.
“Other European countries prioritise the hospitality trade because it makes places interesting, it makes places vibrant.
“The UK Government presently is against it, but they have demonstrated that they can move fast when they think they need to – as COVID proved.
“I’d like to keep banging the drum for this, because I think there’s a need to do it.
“Stirling city centre has its challenges too, and I fear it’ll be a tough winter.”
Waterson said that the hospitality industry is currently facing its toughest challenges in decades, with even busy outlets struggling to make a profit due to surging costs.
“The difference between now and the last downturn was that, then, your turnover was decimated,” he said.
“You worked at it and it started to come back. The problem now is that you’re busy but there’s no money. And that’s worrying.”
Wilkinson also took the opportunity to make the case for rates relief similar to that currently enjoyed by hospitality businesses in England.
He said the Scottish Government’s decision not to replicate the relief in Scotland had been ‘a huge blow’ for the Scottish industry.
