MPs increase pressure on chancellor to support hospitality in Spring Budget

More than 40 MPs have signed a letter to chancellor Jeremy Hunt calling for the hospitality and tourism industries to be supported in the Spring Budget saying they are “significantly over-taxed”.

The MPs said that action was needed to allow operators to “thrive and accelerate growth in the wider UK economy” and urged the chancellor to take action on “inequitable business rates” and VAT.

The letter written by Simon Jupp, Conservative MP for East Devon and chair of the all-party parliamentary group for hospitality and tourism, was signed by MPs including former home secretary Priti Patel, Tobias Ellwood, Therese Coffey, Richard Drax and Stephen Crabb.

The letter referenced ONS data that showed business rate payments consistent with a “fair share” of turnover would be £2.4b less annually than operators are scheduled hand to authorities next year. It called for the chancellor to announce a lower sector-specific multiplier ahead of April’s increase.

The letter, which also supported the sector's calls for a VAT reduction, read: “If imminent action is not taken, more hospitality businesses, which provide our constituents with safe, warm, welcoming spaces that boost the wellbeing of the local community and support jobs will be lost forever.”

The chancellor will deliver the Spring Budget on 6 March. More than 100 hospitality bosses have also written to the treasury calling for support.