Hospitality Industry: VAT
(asked on 1st December 2020) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the reduction in VAT for the hospitality industry to 5 per cent on the viability of that sector.
This question was answered on 9th December 2020
The temporary reduced rate of VAT (five per cent) was introduced in order to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors. This relief comes at an estimated cost of £2.54 billion and is therefore expected to have benefited the sector by reducing its VAT liabilities by this amount.