Add additional new VAT of 5%, applied to all Foods and Drinks (for humans) currently Zero rated. These items are Vatable in most European countries.

This policy would bring the UK more in line with European norms. For comparison, here are the VAT rates other major European countries apply to most foodstuffs:

• Germany: Applies a reduced VAT rate of 7%
• France: Applies a reduced VAT rate of 5.5% on essential foods
• Sweden: Applies a reduced VAT rate of 12%

The change would go some way to addressing the concerns of the hospitality industry that no VAT on drink creates an unlevel playing field.

Our proposed 5% rate would therefore still be among the lowest in Europe.

While this action may unintentionally contribute to inflationary pressures, failing to act could risk inflation spiralling out of control, as seen in previous financial crises