Chancellor John Healey has pledged to support Liverpool's struggling hospitality businesses, but stopped short of committing to action to reduce the impact of VAT on restaurants, pubs, bars and hotels.
All of those businesses, which Liverpool is famous for, will be on display and in action in the coming days as huge numbers flood into the city for the Labour Party Conference. But their message to the Chancellor ahead of his keynote speech at the Arena and Convention Centre is that without help, they could go under.
VATsTheProblem campaign
Many hospitality businesses in this city are part of a VATsTheProblem campaign, which calls for the rate of VAT charged on UK hospitality businesses to be reduced from 20% to 10%.
When Andy Burnham came to power as Prime Minister at the start of the summer - and appointed John Healey as Chancellor - the government quickly announced a cut in business rates for pubs, clubs, social clubs and music venues, which they said would lessen the pressure on those venues.
But that cut didn't cover restaurants and hotels and for many hospitality bosses, it is a move on VAT that would be the real game-changer in terms of providing stability for a sector that has been battered by rising costs.
Chancellor's response
But ahead of his speech, the ECHO asked Mr Healey if he is likely to make any changes to VAT rates in his budget announcement next month. Our question came during a chat with the ECHO on board the new Mersey Ferry.
Mr Healey said: "It was the first week that we moved not just to give people a bit of breathing space, with the bus fare cap, taking VAT off electricity bills but we recognised there is a cost pressure to businesses as well, so the cut in business rates for pubs, clubs, music venues and social clubs was a sign that we will do what we can to give the country a breathing space."
"I will do what I can in the budget to give the country and businesses that bit of breathing space. We can't remove the pressures people feel, a lot of these are directly because of worldwide tensions, conflicts, economic shocks. But I hope we are saying to people that this is a government that will act and will act decisively."
"In the end what will lift this country is what is lifting this city now, which is economic growth that brings good jobs and good hope for the future. When that happens, people start telling each other stories about the future instead of the past."
He added: "For old industrial areas like Merseyside, that sense of hope for the future is so important."
Praise for Liverpool growth
The Chancellor was full of praise for the growth being seen in the Liverpool City Region at present, which is outpacing the rest of the country.
He said: "I have been back in Liverpool off and on for nearly 30 years, I have seen it when times were really tough, but the special spirit of Liverpool, the spark, the resilience, the determined enterprise here, that means however tough it is, they will get through it and get beyond it."
He added: "The fact we now have Steve Rotheram here in Liverpool and this place growing faster than the rest of the country, you have got a Labour government ready to stand and push power and resources here and we will accelerate that."
The Labour Party Conference begins in earnest today. The keynote speech of the Chancellor will take place on Monday, followed by the Prime Minister on Tuesday. The ECHO will have full coverage throughout the major event.
