The Leader of Cumbria Chamber of Commerce said that "without help many businesses are likely to be tipped over the edge and close."

This comes after Plaid Cymru's Mabon ap Gwynfor wrote to the government last week asking for a cut to the 20% VAT rise for restaurants and hotels. 

However the Treasury said that lowering the VAT rate for hospitality businesses over COVID was a temporary measure.

In July 2020 the VAT rate for hospitality businesses was reduced from 20 per cent to 5 per cent, remaining at five per cent until October 2021 when it climbed to 12.5 per cent and then in April 2022 it rose back to 20 per cent.  

However many businesses across the UK and in Cumbria have complained that the current economic situation is damaging their bottom-line. Mrs Caldwell, leader of the Cumbria Chamber of Commerce said: 

"Hospitality businesses had an awful time through the pandemic and just at the time when they need every chance to recover they’re being hit by staff shortages and spiralling bills.

As if that wasn’t enough we now have the cost of living crisis, which seems set to continue to worsen for some time, and will impact on consumer demand."

In May 2021, Cumbria Tourism released research that said that in the previous month 34 per cent of businesses were concerned about recruiting staff.

READ MORE: https://www.in-cumbria.com/news/19310881.research-cumbria-tourism-reveals-major-staff-shortages/

Kate Nicholls, chief executive of UKHospitality, said that there was a shortage of up to 180,000 workers across Britain's hospitality sector at the end of 2021. 

The hospitality industry is crucial for Cumbria, which receives a boost in the local economy during the summer when holidaymakers spend money on eating and drinking out.

In July 2021 Paul Murphy, of Recruit Hospitality, said:

"Cumbria's hospitality industry supports 65,000 jobs, welcomes 47 million visitors, and contributes £3billion to the local economy." 

Business leaders have also said the impact of Brexit on the hospitality sector has made it harder to address the shortfall in workers.