Hospitality Industry: VAT
(asked on 3rd February 2021) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with his Cabinet colleagues on extending the hospitality sector's temporary reduction of VAT from 20 to 5 per cent to the service sector.
This question was answered on 8th February 2021
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 policy will cost over £2 billion. The Government keeps all taxes under review, and any future decisions on tax policy will be made at Budget.