VAT for UK hospitality

Early day motion 196, tabled 1 June 2026 by Sorcha Eastwood (Alliance). Signed by 62 members.

That this House notes with alarm that the UK hospitality sector is under severe and compounding pressure, with thousands of businesses entering insolvency and margins eroded by rising energy costs, increased business rates, staff shortages, and supply chain inflation; recognises that the United Kingdom is an outlier among European countries, with the full 20% VAT rate charged against a European average of 12.8%, and significantly above France, Spain, and Italy, each of which applies 10%, placing UK businesses at a direct competitive disadvantage on pricing and profitability; further notes the findings of the Milburn Review, published May 2026, which warned that over one million young people are currently not in education, employment or training, the highest level in more than twelve years; further recognises that high street hospitality is among the most important providers of first jobs for that generation, offering not only employment but the customer service, teamwork, and professional skills that form the foundation of a working life; also notes with deep concern that sector vacancies have halved in the last four years alone; and calls on the Government to urgently cut VAT for hospitality to protect these vital local businesses, jobs, and the young people for whom this sector remains the most accessible route into work.

Signatures by party: Liberal Democrat 28, Labour 16, Plaid Cymru 4, Conservative 3, Independent 3, Labour/Co-operative 3, Scottish National Party 2, Alliance 1, DUP 1, Traditional Unionist Voice 1.