Business, Political | Posted on November 14th, 2025 | return to news

Dorset MP calls for emergency VAT cut to save pubs and cafés

Vikki Slade MP has backed the Liberal Democrats’ call for an emergency 17-month five per cent VAT cut to save the hospitality sector.

Vikki Slade, the Liberal Democrat MP for Mid Dorset and North Poole, is backing her party’s call for an emergency VAT cut to help the country’s pubs, cafés and wider hospitality sector.

Ahead of the next Budget, the Lib Dems are urging Chancellor Rachel Reeves to cut VAT from 20 per cent to 15 per cent for 17 months in order to revitalise high streets and help lower costs for customers. The party argues that many people have been “priced out” of things like a meal out, a family day trip, or a drink at their local pub — small joys that bring communities together.

Slade, who previously ran her own hospitality business and worked in a pub, said:
“So many pubs, cafés and attractions are struggling to stay afloat — they are the heart of our communities and so important for wellbeing. It’s a cost-of-doing-business crisis.”

She added that the government’s failure to act is costing jobs and community spaces.

Slade recently launched her own Pub of the Year competition to celebrate the area’s local pubs and highlight the challenges they face — with many struggling under rising costs, staff shortages and falling customer spending.

She said: “In Mid Dorset and North Poole, 54 pubs and two breweries support around 1,600 jobs — but these are at risk. Across the UK, we’re losing one pub every single day, and more than 80,000 hospitality jobs have been lost since the last Budget.

“It’s devastating to see the toll this is taking on our high streets and on the local businesses that make our towns and villages special.”

As well as the VAT cut, the Lib Dems propose reducing energy bills by more than £90 a year by removing the Renewables Obligation levy from electricity bills. The plans would be funded by a windfall tax on big banks, raising around £30 billion between now and 2030.

Slade said: “Independent family businesses have been left to struggle, hammered by rising costs and shrinking customer spending. People deserve to afford the occasional treat — and our pubs, cafés and restaurants deserve a fair chance to survive.

“Cutting VAT for hospitality would give these businesses vital breathing space, boost footfall on our high streets, and help families enjoy the small moments that make life worth living.”