Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential the merits of extending the hospitality industry’s VAT reduction to include wine and spirit sales.

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 and it is necessary for a boundary for eligibility to be drawn. The Government keeps all taxes under review, and any future decisions on tax policy will be made at Budget.

The Government has announced a significant support package to help businesses from a whole range of sectors 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. Alcohol duty was frozen at Budget 2020 to help pubs and the alcoholic drinks sector.