Fife MSP calls for Chancellor to take urgent action on VAT

Shirley-Anne Somerville. Image: The Scottish Parliament

Dunfermline and West Fife MSP, Shirley-Anne Somerville, is calling for VAT cuts.

The SNP member is urging the Chancellor to help small businesses save money in next week's Spring Statement. 

She wrote to Jeremy Hunt after concerns were raised with her by several local businesses, including cafes and shops.

Shirley-Anne has also suggested that a reduced rate of VAT for the tourism and hospitality sector could be reinstated.

The Spring Statement is due to be delivered on March 6.

Ms Somerville said: "The businesses I have spoken to have told me about the crippling effect VAT has on their bills, with some even explaining to me they feel they have nowhere else left to turn.

"The Scottish Government has been calling for a reduced rate of VAT for small business' energy bills for some time now, in addition to a reduced rate for tourism and hospitality organisations.

"Unfortunately, the Tories have so far ignored those pleas but I have urged the Chancellor to use his powers over VAT to support businesses still recovering from the impact of the pandemic and suffocating energy price rises.

"Inflation may not be as high as it was a year ago, but prices are still increasing.

"Living standards in 2024-25 are also expected to be lower than before the pandemic, placing household budgets under further strain.

"Regrettably, the UK Government still controls many of the financial levers affecting the lives of people across Dunfermline and West Fife.

"It is only with the full powers of independence that we can ensure that all decisions affecting people in Scotland are taken here in Scotland."

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