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Lib Dems Propose VAT Cut to Ease Living Costs

11/12/2025

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Summary

Story summary

Liberal Democrats propose a 5% VAT cut for hospitality in the budget to ease the cost of living.
The plan would cut VAT from 20% to 15%, saving families £270 over 18 months.
It would remove the renewables obligation levy, potentially lowering energy bills by £90 per year.
Funding would come from a windfall tax on major banks, raising £30 billion by 2030, said Liberal Democrat Deputy Leader Daisy Cooper.

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Story summary

Liberal Democrats propose a 5% VAT cut for hospitality in the budget to ease the cost of living.
The plan would cut VAT from 20% to 15%, saving families £270 over 18 months.
It would remove the renewables obligation levy, potentially lowering energy bills by £90 per year.
Funding would come from a windfall tax on major banks, raising £30 billion by 2030, said Liberal Democrat Deputy Leader Daisy Cooper.