The Licensing Act 2003 intended to create a café style culture with limited success. This proposal could help drive the change. Cafe and restaurant food service is more labour intensive than shop sales of alcohol so making eating out cheaper should drive economic growth.
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We want all food served in cafes, restaurants, pubs etc. to be cheaper to consumers as this should help hospitality businesses survive.
Increasing VAT on the sale of alcohol in shops should encourage people to go to cafes and restaurants and also reduce heavy drinking at home. This should be better for tax revenues than minimum pricing and should be neutral or beneficial to tax revenues if implemented correctly.
EU member states are regulated and cannot have multiple VAT rates. As the UK leaves the EU we can.