Oldham Lib-Dems welcome Chancellor’s cheap eats move

The Leader of the Opposition and of the Liberal Democrat Group on Oldham Council, Councillor Howard Sykes MBE

The Leader of the Opposition and of the Liberal Democrat Group on Oldham Council, Councillor Howard Sykes MBE, has welcomed the reduction in VAT on food purchased in pubs, cafes and restaurants from 20% to 5% for a six-month period.

This was one of the Chancellor Rishi Sunak’s announcements on July 8.

Councillor Sykes is especially pleased because the Oldham Liberal Democrat Group proposed just such a VAT reduction in a motion almost six years ago to Oldham Council.

Councillor Sykes said: “In September 2014, the Liberal Democrats brought a motion before Oldham Council calling for a VAT cut to 5% from 20%. 

"This was in support of Tax Parity Day, an annual event hosted by pub chains, such as Wetherspoons, where food is reduced in price for one day to demonstrate the value of a VAT reduction to customers.

"Unfortunately, the Labour and Conservative Groups both voted against the motion and so it was lost.”

Chancellor Sunak has also announced that in August customers will save up to £10 per head if they eat out on Mondays, Tuesdays and Wednesdays.

Councillor Sykes added: "I am delighted that six years on, a Chancellor has finally recognised that VAT needs to be reduced at a time when people are struggling with reduced incomes, many because of shorter working hours or unemployment caused by the Covid-19 pandemic. 

"I hope that pubs, restaurants and cafes will pass on the VAT reduction to customers and that many establishments will register for the reduced-price meal deal so that families can again begin to enjoy the experience of eating out together.”

However, Councillor Sykes would like to see the VAT reduction become permanent.  

He concluded: “The VAT treatment on food in catering establishments is manifestly unfair.

"Our pubs are still struggling after the Covid Lockdown and the economic impact of the disease is likely to be with us for years so it would be both fair and sensible to continue with the VAT reduction indefinitely, with the condition that pubs, cafes and restaurants pass on the benefits to customers. 

"This will boost trade and help safeguard pubs as social hubs in our communities and safeguard vital jobs in our hospitality industries.”

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