Renfrewshire Liberal Democrats are calling for an emergency VAT cut at next week’s Budget, warning that families across the area are being “priced out” of keeping warm and enjoying a night out.
The party wants VAT for pubs, restaurants, cafés, accommodation and visitor attractions reduced from 20% to 15% as part of a £12bn cost-of-living package. They say the move would slash prices for families and give struggling high streets a lifeline.
Alongside the VAT cut, the Liberal Democrats are urging the Chancellor to remove the “renewables obligation” levy from household energy bills, arguing it would help ease pressure on people facing another winter of record costs. They say the combined plan, running until April 2027, would save a typical family around £270 over the next eighteen months.
The proposals would be funded by a windfall tax on big banks – an idea originally developed by the IPPR think tank – which the party says could raise tens of billions of pounds over the rest of the decade. They claim less than half of that revenue would be needed to cover both the VAT reduction and the cost of removing the levy from bills.
The Liberal Democrats also believe the move would boost footfall in pubs, restaurants and entertainment venues that have been hit by falling consumer spending. Polling from More in Common, cited by the party, shows many people now feel that meals out, nights out and trips to the cinema have become unaffordable for most households.
Grant Toghill, Scottish Liberal Democrat candidate for Renfrewshire North and Cardonald, said: “People are working with their nose to the grindstone all month and have next to nothing left over after sky-high bills and spiralling food prices.
“In years gone by people knew they could look forward to fish and chips with their family on a Friday night or a weekend trip to the cinema. Now those small joys – the ones that make life worth living – are becoming an unaffordable luxury for too many.
“High street businesses in Renfrewshire have been hammered by Labour’s jobs tax, so it’s no wonder that so many treasured pubs, restaurants and cafes are boarding up their shopfronts, taking with them vital jobs and local community spaces.
“It doesn’t have to be that way. If you want change, you can vote for it. In many constituencies, we are on the verge of winning against the SNP but wherever you are, every vote for the Scottish Liberal Democrats on the second peach ballot will deliver change with fairness at its heart.
“Our plans to cut VAT on hospitality and energy bills for households would put £270 back into people’s pockets, making it more affordable to heat their home and allowing them to spend more on occasional extras. This would help to drive economic growth, restore our high streets and give the country a much-needed morale boost.”