VAT REDUCTION FOR HOSPITALITY INDUSTRY

That this House recognises that local restaurants and pubs are facing very challenging conditions in the current economy and are being put under further pressure by the rise of large supermarkets; notes that these businesses lie at the heart of their local communities, economically and socially; further notes that 13 EU member states, including the Republic of Ireland, have introduced a reduced rate of VAT within their tourism and hospitality sectors for hotels, restaurants and pubs and that such measures have had a positive impact; calls on the Chancellor of the Exchequer to introduce similar sector-specific VAT reduction measures to help businesses in the UK; and further recognises that such a move would encourage growth in the wider economy, support job creation and generate investment in local businesses.