Supporting "VAT’s The Problem" Campaign

That the Parliament recognises what it sees as the significant challenges facing Scotland's hospitality sector as a result of rising operating costs, inflationary pressures and wider economic uncertainty; notes that the UK Government introduced a temporary reduction in VAT for hospitality, tourism and leisure businesses during the COVID-19 pandemic; further notes that many European countries, including France, Spain and Italy, already apply reduced rates of VAT to hospitality services in order to support growth, investment and employment; welcomes the "VAT's the Problem" campaign and its call for a reduction in VAT for hospitality businesses to 10%; notes that the campaign is supported by industry organisations including UKHospitality Scotland, the Scottish Hospitality Group, the Scottish Licensed Trade Association (SLTA) and the Scottish Beer and Pub Association and has already garnered more than 170,000 signatures; acknowledges what it sees as the vital contribution that hospitality businesses make to local economies, tourism, employment and community life across Scotland; recognises the important role that hospitality businesses play in sustaining Scotland's town centres, high streets and rural communities; notes that the hospitality sector is a major employer and provides opportunities for skills development and career progression for people of all ages; expresses concern at the pressures facing many businesses in the sector and the risk that continued closures could have on jobs, local economies and community wellbeing; believes that targeted tax measures could support the long-term sustainability and competitiveness of the sector, encourage investment and boost economic growth, and calls, therefore, on the UK Government to reduce VAT for hospitality businesses to 10%, or alternatively to devolve the necessary fiscal powers to the Scottish Parliament to enable such measures to be implemented in Scotland.