NTIA: 5,000+ call for VAT reduction to 12.5%

04-Mar-2024 - Last updated on 04-Mar-2024 at 10:46 GMT

Rally call: NTIA CEO Michael Kill has called for action on VAT from Chancellor Jeremy Hunt (right)

Related tags NTIA Government Finance Legislation

Calls for the Government to slash VAT down to 12.5% from its current 20% level in the Spring Budget have poured into MPs’ offices, according to the Night-Time Industries Association (NTIA).

The trade body said during the past three weeks more than 5,000 representations have been sent to constituent MPs’ offices, urging them to advocate the VAT reduction as part of the #LeaveNoOneBehind campaign.

The group said: “Hospitality and night-time economy sectors, pillars of our nation’s culture and economic vitality, have faced unparalleled challenges in recent times.

“The ongoing global pandemic, coupled with stringent restrictions and economic uncertainties, has pushed these industries to the brink.”

Campaign rally

It continued: “Recognising the urgent need for support, businesses and individuals from all corners of the country have rallied behind the #LeaveNoOneBehind campaign.”

NTIA CEO Michael Kill added: “We cannot afford to leave any businesses behind in this Budget. Failure to extend additional relief in the form of VAT over the coming 12 months could be catastrophic for many as they grapple with unprecedented financial pressures.”

The NTIA said Kill’s impassioned plea reflects the shared sentiment among stakeholders that decisive action must be taken to safeguard the future of countless enterprises.

It added the “overwhelming support” garnered by the #LeaveNoOneBehind Campaign “underscores the depth of concern and determination within the industry”. As the Budget approaches, voices from across the nation unite in a “resounding call” for measures that will provide “essential lifelines to struggling businesses and ensure their continued survival”.

Impassioned pleas

The NTIA added: “In the face of adversity, solidarity prevails. Together, we urge policymakers to heed the impassioned pleas of businesses and supporters nationwide and take decisive action to support the backbone of our economy.”

Last week (1 March) a report by NTIA said there had been “no real growth” in turnover across the night-time economy since 2019.

It added the sector has lost about £95bn in revenue since 2019 with the pandemic and high inflation had “impacted investments and customer experiences”.