Oral Answers to Questions

Simon Jupp Excerpts

Tuesday 1st February 2022 Commons Chamber

[The Financial Secretary to the Treasury (Lucy Frazer)]

The hon. Member will know that the oil and gas industry pays a significant amount in taxation—I mentioned the figure earlier. In terms of helping people who are struggling with their bills, he will know that we already have the energy price cap, the winter fuel payment, the warm home discount and the cold weather payment. We are looking out for and supporting those on the lowest income to enable them to get through this difficult period.

[Simon Jupp (East Devon) (Con)]

T7.   Pubs, restaurants, cafés and hotels were brought to their knees again over the festive period as people simply stayed at home. Will the Financial Secretary consider extending the reduced rate of VAT on hospitality and tourism to help those hard-hit businesses?

[Lucy Frazer]

My hon. Friend will know that we have already made a significant input to support those in the hospitality and tourism industries. He will know that we extended the 5% reduced rate of VAT for those sectors to the end of September. On 1 October, we reduced the rate to 12.5%. That relief has cost the Government and the taxpayer more than £8 billion. Although all taxes are kept under review, there are no plans to extend the 12.5% reduced VAT rate.