Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate he has made of the effect on the number of jobs in the tourism sector of ending the VAT Retail Export Scheme; and what steps he is taking to ensure the retention of jobs in that sector after the end of that scheme.

The Government recognises the challenges the tourism sector is facing and is spending billions of pounds supporting people, families and the economy during the COVID-19 pandemic. The Chancellor announced the Winter Economy Plan on 24 September. This includes an extension to the temporary 5 per cent reduced rate of VAT on goods and services supplied by the tourism and hospitality sectors from 12 January to 31 March 2021. This alone provides continued support for the cash flow and viability of over 150,000 businesses and protection for 2.4 million jobs in the tourism and hospitality sectors. This is in addition to the 100% business rates holiday for many businesses, which is worth over £10 billion, and a £1,000 job retention bonus for bringing furloughed employees back to work. The Winter Plan also provides further support to businesses and jobs over the coming months, including through the Job Support Scheme which will protect millions of jobs.