The Liberal Democrats are calling for a 5% cut in VATS in this month’s budget to support the UK’s recovering hospitality sector and their hard-pressed customers.
Deputy Leader and Treasury spokeswoman Daisy Cooper called on the Chancellor to cut VAT from 20% to 15% to promote British pubs, British restaurants.
He said the government should act to help people get “small pleasures”, like eating in a restaurant.
This could be funded by a new wind tax on big banks, originally proposed by the IPPR think tank, which COOPER claims could amount to around £30bn in total between now and 2030.
More than half of people are thinking of going out to a Pub or restaurant now unexpectedly, according to a recent poll from more common.
Cooper said: “People have been working with their noses in the grindstone all month and have nothing left after sky prices and food prices.
“For years people have lost that they could look forward to fish and chips with their family on a Friday night or weekend trip.
“Now those little joys – the ones that make life worth living – have become unhealthy luxuries for too many.”
Chancellor Rachel Reeves is expected to break Labor’s manifesto pledge not to increase income tax, VAT or National Insurance in her budget later this month, and it has been suggested she will keep both child benefits.
He is not expected to cut VAT. The Treasury has been contacted for a response to the Lib Dem policy proposal.
The Lib Dems are also calling on the Chancellor to cut energy bills by around £90 a year by agreeing to key levels of energy reform by 2022.
The Liberal Democrats say their long-term plan could be put in place over the next 18 months and save the average family £270 a month by 2027.
The package will cost £12bn, the Party said, with a cut cast of £7.5bn and replacement of current reform obligations of £4.5bn.
The windfall tax on big banks is estimated to bring in around £7bn a year to the coffers.
Cooper also called for the Big Bank Levy to fund £2bn of capital investment for a new Energy Security Bankwhich will include funding for green energy home loans.
The Lib Dem Security sources should take two years to build, alternating between the 2027-28 financial year in April 2027 and April 2030.
The reduction of energy bills is a key focus of all the main parties, and the liberal Democrats have joined the conservatives in calling for an end to the obligation changes.
The Green Party, like Labour, is firmly focused on the use of oil and gas, but UK reform wants to scrap energy targets, and return to the use of fossil fuels and fracking.
Labor is focused on extending changes to meet the manifesto pledge to cut energy bills by “until 2030” and end Fossil countries like Russia.