Greater Manchester's Night Time Economy adviser has called on Chancellor Rishi Sunak to not end the VAT reduction amid rising living costs.

Responding to Chancellor Rishi Sunak’s comments on Sunday, Sacha Lord said he was concerned for the North with the planned VAT increase from 12.5 per cent to 20 per cent in April on top of the high fuel rates and household bills.

To support businesses and protect 2.4 million jobs following the lifting of the COVID-19 lockdown, VAT was reduced for certain sectors. That is set to come to an end at the start of April.

He said: "At a time when we are supposed to be levelling up, we are only seeing the divide between rich and poor widen.

"The Chancellor says tax increases are needed now in order to calm future fiscal problems, but while this long term view is commendable, it is critically short sighted when so many are suffering financially today, and having to make choices on whether to spend their wages on food or heating."

Mr Lord said the hospitality sector was well known for employing college leavers or those needing flexible careers in order to care for children or elderly parents, so it was a vital employer for the North West's deprived areas.

He said: "Our industry needs to stay afloat in order to keep providing these work opportunities and I fear for the survival of many businesses.

"The planned VAT increase from 12.5 per cent to 20 per cent from April will only exacerbate the perilous financial position many businesses find themselves in. 

"I urge the Chancellor to reconsider an extension to the current rate to stave off closures across the sector and the loss of thousands of jobs.”