EDM 280: Impact of costs on hospitality businesses

That this House expresses deep concern at the closure of four local cafés in Portadown, Northern Ireland within the past month, as a direct result of rising operating costs, particularly in energy, food, and staffing; recognises that small and medium-sized enterprises form the backbone of local communities and are essential for economic growth and social cohesion; acknowledges the increasingly challenging business environment faced by hospitality venues across the UK, exacerbated by soaring inflation, ongoing energy price volatility, and reduced consumer spending power; notes that VAT is not devolved and can therefore only be set by the UK Government; further recognises that the UK is an outlier for having a higher rate of VAT for the hospitality sector compared to other European economies, placing additional strain on the sector; calls on the Government to implement a permanent cut of 5% on VAT to help hospitality businesses meet the challenges of the cost of living crisis, to remain sustainable in the future so that they can continue to contribute to the wider economy; further calls on the Government to urgently review and extend support mechanisms for small businesses, including the introduction of targeted relief for energy costs and a review of business rates; and urges the Government to take such action immediately so to prevent further closures and safeguard local businesses that play a vital role in the economic and social wellbeing of communities across Northern Ireland and other nations within the UK.