Oral Answers to Questions

Ian Levy Excerpts

Tuesday 26th January 2021 Commons Chamber

[Jesse Norman]

As my hon. Friend says, and I thank him for it, the temporary reduced rate of VAT was introduced to support the cash flow and the viability of over 150,000 businesses and to protect 2.4 million jobs in the hospitality and tourism sectors. It was extended in September and extended again, and will now run until 31 March of this year. But the relief comes at a significant cost, and while the Government keep taxes under review, we have no current plans to extend it further. I remind my hon. Friend that there are many other aspects of our financial support that may be of assistance to his constituents.

[Ian Levy (Blyth Valley) (Con) [V]]

The Eat Out to Help Out scheme was seen by many in the hospitality industry as a lifeline for the survival of their business after the lifting of restrictions last summer. Will my hon. Friend assure me that his Department will carefully consider reinstating the scheme or something similar once we come out of lockdown?

[The Economic Secretary to the Treasury (John Glen)]

I thank my hon. Friend for his question. Across the pandemic, the Government have created a number of innovative responses, like Eat out to Help Out. We will continue to examine very carefully what package of measures we need to intervene with, and the Chancellor has indicated that he will be coming forward at the Budget with an update to the House on that package in due course.