Calls for a cut in VAT on hospitality have been made by both a Powys councillor and the local MP, as concerns continue over rising costs facing businesses in Mid Wales.

Powys County Councillor Matthew Dorrance wrote to Chancellor Rachel Reeves last week, backing a national campaign calling for VAT on hospitality to be reduced from 20 per cent to 10 per cent.

In his letter, he said the sector was under “sustained pressure” from rising energy, labour and operating costs, and argued that a lower rate would help businesses reinvest, protect jobs and support growth on high streets.

He said UK hospitality businesses were at a disadvantage compared with some European countries, where VAT rates are lower, and argued this was affecting competitiveness.

The Labour councillor for Brecon West also pointed to the role of hospitality firms in local economies, including in Powys, where they support jobs and tourism.

Cllr Dorrance said a reduced VAT rate would provide “immediate cashflow relief” and help businesses deal with wider cost pressures.

He said the measure would also support investment and long-term stability in the sector.

“I would therefore urge you to give serious consideration to this proposal as part of your continued work to deliver a stronger and more resilient UK economy,” he said.

Meanwhile, the Liberal Democrat MP for Brecon, Radnor and Cwm Tawe, David Chadwick, has also called for an emergency cut to VAT to help struggling high street and hospitality businesses.

Speaking during a debate on high streets, he said businesses in towns such as Brecon were facing a “perfect storm” of rising costs, including energy bills, water charges, business rates and employer National Insurance contributions.

He said many businesses are being forced to absorb substantial additional costs at a time when consumer confidence remains fragile.

During the debate, the MP raised concerns about the impact of business rates revaluations and called for measures to support town centres.

He also called for a temporary reduction in VAT for hospitality businesses, arguing that the UK's VAT rate remains significantly higher than those in many comparable European countries.

Commenting after the debate, Mr Chadwick said: "Brecon has one of the most beautiful high streets in Wales, with centuries of history, independent businesses and a unique character that attracts visitors from across the country.

"However, local businesses are telling me that they are under enormous pressure. Rising energy and water costs, higher business rates and increased taxes on employers are all adding to the burden they face.

"Our high streets are vital to the local economy and to community life. We cannot afford to see thriving businesses forced to scale back or close because of decisions being made in Westminster.

"An emergency cut to VAT would give businesses some much-needed breathing space, helping them to protect jobs, invest in their future and keep our town centres vibrant.

"If the Government is serious about supporting high streets, it must recognise the challenges businesses are facing and take action before more damage is done."