Liz Jarvis MP urges Government for cost of living package in Budget to give Eastleigh businesses 'breathing space'

The Liberal Democrats cost of living package also includes support on transport costs and energy bills, which would provide breathing space for the next 18 months, at a total cost of £14bn over the next year and a half, fully funded through a windfall tax on the big banks, a clawback on energy network monopolies, and extra oil and gas revenues caused by Trumpflation.

A cost of living support package would give local businesses in Eastleigh breathing space, Liz Jarvis MP has said.

According to official ONS figures, Eastleigh saw 285 businesses close their doors in the first half of 2026. This led to an overall reduction in the number of local firms by 20, as business closures overtook new openings.

With households under pressure from January changes to the energy price cap and fuel duty, March rail fare hikes of 4.2%, and April's twin blow of VAT returning on electricity and council tax rises, there is less money to spend in local shops, pubs and restaurants just when they need it most.

To protect household budgets, the Liberal Democrats are urging the Chancellor to bring forward an emergency package to provide breathing space for the next 18 months, at a total cost of £14bn over the next year and a half, fully funded through a windfall tax on the big banks, a clawback on energy network monopolies, and extra oil and gas revenues caused by Trumpflation. The three-point plan includes:

• A temporary VAT cut for hospitality, accommodation and attractions, to rescue struggling high streets far beyond the Government's limited £150 million fund for music venues and pubs. The party also calls for an overhaul of the broken business rates system and a reduction in the Employer National Insurance Contributions burden.
• An Essential Energy Guarantee to cut average annual bills by £100. Every household would receive a basic energy allowance, equivalent to 50% of average energy consumption, at a discounted rate, with extra allowances for children and the discounted rate on all energy use for disabled people and those on the lowest incomes. The poorest 20% would save an average of £140.
• An emergency transport package cutting fuel duty by 10p (bringing down prices at the pump by 12p per litre), slashing bus fares to £1 from the current £3 cap, cutting rail fares by 10%, and making it cheaper to drive electric vehicles by cutting VAT on public charging and reviewing unfair network costs.

The party warned that the OBR’s living standards forecast will set a definitive test that Chancellor John Healey will either pass or fail on 28 October.

The package is fully funded without extra borrowing or permanent tax rises, through a windfall tax on bank QE profits, a clawback on energy network monopolies, and recycling surplus oil and gas tax revenues.

Liz Jarvis, MP for Eastleigh, has said:

"Local business finances in Eastleigh are a ticking time bomb. We've seen an unacceptable rise in business closures, but a cost of living support package would give families and local businesses breathing space.

“Our high streets are struggling, but it's not too late to save them. The Chancellor must stop dragging his feet and bring forward an emergency package that backs local businesses with a hospitality VAT cut, and puts money back in people's pockets to spend in our town centres.”