The COVID19 pandemic is affecting the food service sector. There will be losses of jobs and income and ultimately small businesses will close. For businesses to endure the crisis a reduction in the VAT will allow the redistribution of business revenue into staff wages, rent, and lower sale prices
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In 2015 the British Hospitality Association reported that the UK hospitality industry paid £41 billion in tax with approximately half being VAT.
That same year the industry employed 2.9 million people, with 1.5 million working in restaurants. It is impossible to know how many will lose jobs in the short term.
Eventually the industry will need to recover and return to 'normal'. The lower tax rate will benefit not just the small business owners but the staff they employ and the consumer.