MPs call for greater hospitality support in March budget

A letter signed by more than 80 cross-party MPs has called on UK chancellor Rishi Sunak to offer greater financial aid for the hospitality sector during the budget on Wednesday (3 March).

The All-Party Parliamentary Group (APPG) for Hospitality and Tourism has written to Sunak asking for “decisive financial support” to protect hospitality businesses impacted by the Covid-19 pandemic.

MPs including the Scottish National Party’s Alyn Smith, Liberal Democrat Tim Farron and Green Party MP Caroline Lucas have signed the letter, which calls for an extension of the value added tax (VAT) cut to 5% on food and soft drinks for another 12 months, and a further 100% holiday on business rates for all sectors across the UK, covering the next financial year.

Co-vice chair of the APPG, MP Sally-Ann Hart, said: “Our hospitality and tourism sectors are some of the best in the world. They are a fantastic social as well as economic asset and we should be immensely proud of them.

“They have been absolutely devastated by Covid, though. Despite unprecedented financial support from government, unfortunately many businesses have been lost and they have taken hundreds of thousands of jobs with them.

“These are businesses that are critical to communities around the country. They are focal points for social lives and drive inward investment. Ongoing government support through to the end of the pandemic and through the recovery phase is critical to rebuilding this industry and creating jobs.”

The letter also said that while the rollout of the vaccine programme signals an end to the crisis in the future, investment in the on-trade’s recovery would be “vital to our national recovery”.

Alison Thewliss MP, co-vice chair, added: “Financial support at the budget is now a must. The chancellor needs to act positively and extend the VAT cut and the rates holiday to our fantastic hospitality and tourism sector which can help to re-grow our battered economies.

“Support must also be extended to workers in the hospitality and tourism sectors for the entire period that restrictions are in place.’’

Support for the hospitality sector from MPs was welcomed by trade body UK Hospitality, which has repeatedly called for the government to offer greater financial aid to businesses impacted by the Covid-19 pandemic.

Kate Nicholls, UK Hospitality CEO, said: “The support of so many MPs from all parties and from the four nations of the UK emphasises just how important the hospitality and tourism sectors are – and how desperately they need the chancellor’s help at [the] budget. Our sectors can be the engine of recovery, rapidly creating jobs and tackling youth unemployment.

“The chancellor can speed this recovery with extensions to the VAT cut and business rates holiday for the next year.”