Lib Dems Urge 5% VAT Cut To Boost Struggling Pubs And Restaurants. The Liberal Democrats are calling for a 5% cut in VAT in this month’s Budget to help revive Britain’s struggling hospitality sector. Deputy leader Daisy Cooper urged Chancellor Rachel Reeves to lower VAT from 20% to 15%, saying it would boost footfall in pubs, restaurants and entertainment venues — and make “small joys” like dining out more affordable again. The party says the cut could be funded through a windfall tax on big banks, a measure they claim could raise £30 billion by 2030. Recent polling shows more than half of Britons now find eating out unaffordable. Cooper said soaring bills and food prices mean “the little things that make life worth living are becoming an unaffordable luxury.” The Lib Dems also want to cut energy bills by scrapping the main renewables levy, saving households around £90 a year. Together, the proposals could save the average family £270 by 2027. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT