Hospitality VAT cut: can it help the sector and at what cost to UK taxpayer?

Drop to 10% for pubs and eateries would be in line with most of Europe, but critics say it favours multinationals

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Nearly a quarter of hospitality businesses are losing money, fresh data has shown, reigniting calls among chefs, pub owners and restaurateurs for their sector to be handed a reduced rate of VAT.

It may seem like a no-brainer because the measure would ease pressure on the ailing sector and put the UK in line with most European countries. But critics say the measure would be extremely costly and reward big multinational businesses, without necessarily helping to spur growth.