Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will maintain the covid-19 reduced rate of VAT for at least 12 months after the final covid-19 lockdown is eased.
The temporary VAT reduced rate came into effect on 15 July 2020 and was initially scheduled to end on 12 January 2021.
In order to continue supporting the cash flow and viability of over 150,000 businesses and to protect 2.4 million jobs, the Government extended the temporary reduced rate of VAT (5 per cent) to goods and services supplied by the tourism and hospitality sectors until 31 March 2021.
The Government keeps all taxes under review, and future tax decisions will be made at Budget.