August 7, 2022 7.00 am This story is over 18 months old

Hospitality struggling in Lincolnshire: Small businesses ask for VAT cut

Cost of living crisis and inflation making business difficult

Restaurants and other hospitality businesses are feeling the squeeze as the cost of living crisis continues to affect people across Lincolnshire and the nation.

Some of people’s favourite local restaurants and eateries are closing down as the financial storm hits local businesses hard.

For many now eating out is seen as a luxury, with locals saying it is much more sensible to eat at home or reserve restaurant visits for special occasions.

Vine’s bakery in Lincoln has just closed down with the owner blaming spiralling costs, saying: “We’ve battled through the last couple of years.”

Rupert and Darwin Restaurant has shut in Hull, and they have also blamed the current economic climate.

Katrina Pierce from the Federation of Small Businesses said: “Business are dealing with the highest tax burdens since the 1950s, all of that Covid fallout, escalating energy prices, fuel, labour costs – everything – so it’s really challenging for them at the moment.”

Katrina says the government should be offering the same support to businesses as it did during the pandemic. She says: “During Covid, hospitality businesses had VAT cut down to 5% – that was one of the biggest supports for that industry and we’re asking for that again.

“We’re asking for government to step in and provide some relevant strategic support for fuel costs. As residents we’ve had some help with our council tax haven’t we, but businesses are not getting that.”