I’ve pledged full support for the Hospitality Together campaign, calling for a cut in VAT to 10% to help the North-east’s struggling tourism and hospitality sector.
The move comes as hospitality businesses across Scotland face a “triple whammy” of soaring energy costs, labour shortages caused by Brexit and Westminster’s restrictive immigration policies, and a VAT regime that is significantly higher than most European competitors.
The North-east of Scotland is particularly vulnerable to these reserved policies, as the region relies heavily on seasonal tourism and a mobile workforce.
The SNP has long advocated for the devolution of VAT powers to Holyrood that would incentivise growth rather than punish it.
I’m now calling on the Westminster government to heed the concerns of the 300+ businesses represented by Hospitality Together and implement an immediate fiscal intervention before the upcoming budget.
Hospitality is the economic lifeblood of many North-east communities. From our coastal cafes to our historic rural inns, these businesses often define our communities.
It is a travesty that while the SNP Scottish Government works to support the sector through business rates relief and infrastructure investment, the Westminster government is effectively strangling them with a 20% VAT rate and damaging economic policies.
The Chancellor has been warned repeatedly that without a VAT cut to 10%, we could see more cherished local venues close their doors. It is time for Westminster to stop treating hospitality as a cash cow and start treating it as the vital economic engine it is.
