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Stirling MP Pushes for Answers on Hospitality VAT Cut and Business Rates Relief


Categories: Coronavirus (COVID-19), Local Business, SNP Scottish Government, UK Government (Westminster)

Stirling MP Alyn Smith has called on the UK Government to provide businesses across Stirling and Scotland further support, requesting an extension to both the temporary VAT rate of 5% for the hospitality industry, and the current 100% business rates holiday.

In his letter to the UK Chancellor Rishi Sunak, Mr Smith notes that sales across the hospitality sector fell by 54% in 2020, as the impact of the Covid-19 pandemic hit hard across the economy.

In her recent budget announcement, Scottish Finance Secretary Kate Forbes pledged 3 further months of 100% business rates relief. Yet as the Scottish Government remains limited in their powers to borrow, the UK Chancellor must step up and publish his plans for England, and further Barnett Formula consequentials.

Alyn Smith MP said:

‘The scale of economic damage caused by Covid-19, particularly to the hospitality industry, has been immense. Whilst government support so far has been welcome, businesses in my constituency of Stirling desperately need answers. 

The Scottish Government has rolled out financial support to businesses with one-arm tied behind it’s back – the UK Chancellor must match the Scottish Government’s commitment on 100% business rates relief, and explore an expansion of the currently lowered VAT rate to help this struggling sector.’