Tewkesbury MP comes out swinging for High Streets and Hospitality, proposing 5% VAT cut for sector

Cameron Thomas MP has backed a Liberal Democrat proposal this morning, to reduce VAT on the hospitality sector to 15%, and reduce household energy bills for working people for 17 months. These schemes could be funded through a one-time windfall tax on large banks, raising up to £30bn. 

The Tewkesbury MP, who represents 52 pubs across the constituency, including the King Teddy and Greyhound in Longlevens, has repeatedly challenged the government over the impact of its previous budget on small businesses in Gloucestershire.

In Parliament this week, Cameron told the government: “... high streets in Bishops Cleeve, Tewkesbury and Winchcombe have soul, they have character, and they are worth preserving... but if the government will not change course, then we will lose them forever”.

On 9th September, Mr Thomas challenged Chancellor Rachel Reeves to protect pubs and small businesses by reducing Employer National Insurance Contributions, fulfilling its promises on business rate reforms and by bringing down energy costs. The Chancellor raised eyebrows when she responded that Mr Thomas and the Liberal Democrats “might get a little bit more respect and credibility” if they announced alternative tax policies, despite Cameron having suggested an increase to the Digital Services Tax in July.

Cameron added: “I am pleased to offer the Chancellor yet further opportunities to reduce pressure on our high streets, because her last budget was disastrous for our businesses. In exciting news for residents, we are also proposing the removal of the “renewables obligation” levy for 17 months. This would save the average bill payer £90 over a year, and both these policies could comfortably be paid for by a one-off windfall tax on large banks.”