Hospitality Sector VAT: Local Economies, Employment and Growth Debate

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Department: HM Treasury

Hospitality Sector VAT: Local Economies, Employment and Growth

Tom Gordon Excerpts
Thursday 12th November 2026

(1 day, 19 hours ago)

Westminster Hall
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Tom Gordon Portrait Tom Gordon (Harrogate and Knaresborough) (LD)
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It is a pleasure to serve with you in the Chair, Dr Huq. Harrogate is often referred to as the jewel in the crown of North Yorkshire’s cultural offering. We have the flower show, the Great Yorkshire Show, the Harrogate International Festival, which is celebrating its 60th year, the conference centre and much more. We have the likes of the Great Knaresborough Bed Race in the town next door, which also has its iconic castle and viaduct. That means that we have a slew of fantastic hotels, pubs and cafés that support the important visitor economy in our area.

After the Budget a few weeks back, I held my second post-Budget business breakfast with the Harrogate District chamber of commerce. The thing that really came through was that they felt that the Budget was a missed opportunity to support the lifeblood of our local economy. They called for a VAT cut, which would help to reinvigorate our high streets, get young people into work and support the local economy, and were left disappointed with the Budget’s lacking ambition.

UKHospitality has a well-publicised campaign, “VAT’s the Problem”, to cut VAT to 10%. I suggest to the Minister that, if a cut to 10% would be too much, he could pick up Lib Dem plans to cut VAT to 15%. If we do not do something, we will see more businesses shut up shop and a further decline in our high streets. All that comes at the same time that the Government are looking to introduce a visitor levy, which would add to and compound those same problems. Will the Minister meet with Members who have made that point today and look again at a cut to the VAT?