The Treasury minister told The Sun any VAT cut would have to be ‘fully funded’ and provide value for taxpayers’ money.
“We want to support hospitality, but let’s be upfront about this.If you’re having a big cut in VAT, it costs a lot of money, and anything that we announce, we want to make sure it’s fully funded, and we explain exactly how we’re going to do that,” Murray adds.
He also said that he would “not get ahead of anything that might be announced at the Budget”, but said the Government needed to continue looking at ways to support high streets and pubs.
A campaign to reduce hospitality VAT to 10% was launched in June by chef Tom Kerridge, with support from industry bodies including UKHospitality, the British Beer & Pub Association and the British Institute of Innkeeping.
Andy Burnham pledged to reform business rates after taking office in June, before announcing a 20% cut in business rates for pubs, social clubs and live music venues in England, due to take effect from 1 April 2027.
The Treasury also announced this month it was launching a review into how pubs and hotels are valued for business rates.