Vikki Slade MP urges Government for cost of living package in Budget to give Dorset businesses 'breathing space'

Vikki Slade MP for Mid Dorset and North Poole calls on the Chancellor to include a temporary VAT cut for hospitality to support high street businesses in Dorset, as part of an emergency cost of living package.

According to official ONS figures, Doset saw 865 businesses close their doors in the first half of 2026. This led to an overall reduction in the number of local firms by 75, as business closures overtook new openings of 790.

Vikki Slade MP held two roundtables attended by local business owners earlier this month, one each in the local towns of Wimborne and Wareham. Business owners expressed serious concerns about their ability to financially survive with VAT rates as they are, and collectively agreed that a cost of living support package would give local businesses in Dorset some much needed breathing space.

 Liberal Democrat MP for Mid Dorset and North Poole, Vikki Slade MP, said:

"From the two local business roundtables I hosted in Wimborne and Wareham this month, I know that finances are a ticking time bomb. We've seen an unacceptable rise in business closures, but a cost of living support package would give families and local businesses breathing space.

"Our high streets are struggling, but it's not too late to save them. The Chancellor must stop dragging his feet and bring forward an emergency package that backs local businesses with a hospitality VAT cut, and puts money back in people's pockets to spend in our town centres."

With households under pressure from January changes to the energy price cap and fuel duty, March rail fare hikes of 4.2%, and April's twin blow of VAT returning on electricity and council tax rises, there is less money to spend in local shops, pubs and restaurants just when they need it most.

To protect household budgets, Vikki Slade MP and the Liberal Democrats are urging the Chancellor to bring forward an emergency package to provide breathing space for the next 18 months, at a total cost of £14bn over the next year and a half, fully funded through a windfall tax on the big banks, a clawback on energy network monopolies, and extra oil and gas revenues caused by Trumpflation. 

The three-point plan includes:

A temporary VAT cut for hospitality, accommodation and attractions, to rescue struggling high streets far beyond the Government's limited £150 million fund for music venues and pubs. The party also calls for an overhaul of the broken business rates system and a reduction in the Employer National Insurance Contributions burden.

An Essential Energy Guarantee to cut average annual bills by £100. Every household would receive a basic energy allowance, equivalent to 50% of average energy consumption, at a discounted rate, with extra allowances for children and the discounted rate on all energy use for disabled people and those on the lowest incomes. The poorest 20% would save an average of £140.

An emergency transport package cutting fuel duty by 10p (bringing down prices at the pump by 12p per litre), slashing bus fares to £1 from the current £3 cap, cutting rail fares by 10%, and making it cheaper to drive electric vehicles by cutting VAT on public charging and reviewing unfair network costs.

ENDS.