Cut hospitality VAT, say Lib Dems

IB Dem deputy leader Daisy Cooper has said people are “struggling” while Labour is engrossed in “infighting” as she called for a cut to VAT to help restaurants and pubs in the Budget.

- HELEN CORBETT

Her party is pressing for a temporary 5% cut to VAT for hospitality businesses to make going out to the pub and restaurants more affordable and for the main renewable levy to be removed from energy bills.

The £12 billion support package would save the average family around £270 over the next 18 months and be paid for by a windfall tax on banks, the party said.

Chancellor Rachel Reeves is widely expected to break Labour's manifesto promise of not raising income tax and to make changes to the two-child benefit cap in her November 26 statement.

As Health Secretary Wes Streeting categorically denied that he was plotting to oust Sir Keir Starmer on Wednesday morning, Ms Cooper said: “We Liberal Democrats know that all the while Labour is engrossed in their infighting, people are struggling.”