World · Daily Terminal
Warren has run a self-catering holiday let business in Falmouth, Cornwall, for 15 years, said: "We would like to see cuts to VAT, cuts to small business rates and a look back at the National Insurance contributions system." A rise in employer's National Insurance was announced in Labour's first Budget in 2024 and took effect in April 2025. Warren said it had been "absolutely diabolical for the sector" and "tens of thousands of jobs have been cut across the UK since the changes came in". "Businesses have had to close because they could not meet those overheads along with the constant rise in operational costs," she added.
In Newquay, Cornwall, Chris Thomson is the owner and founder of 10 Over Surf Shop, that also hosts a café, barbers and marketing agency. He said it was "tough" starting a small business and "it constantly feels like an uphill battle". He said: "From our perspective on hospitality, it'd be amazing to see the VAT rate reduced.
"Simply because the highest cost for hospitality is staff wages and you can't reclaim VAT against that. "So lowering the VAT rate to 10% would just give us a bit more margin to improve the business and invest in our team."
Source: BBC
