Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will extend the temporarily reduced rate of VAT for (a) retail, (b) hospitality and (c) other heavily effected sectors in response to the covid-19 outbreak.

The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and will run until 31 March 2021. This relief comes at a significant cost to the Exchequer, and there are currently no plans to extend the scope to include other sectors.

The Government has announced a significant support package to help businesses through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the government-backed loan schemes.