Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of a return to a 20 per cent VAT rate for the hospitality and tourism sectors on the ability of those sectors to compete in a global marketplace.

Raising £130 billion in 2019/20, VAT is an important source of revenue and is vital for funding public services such as health, education and defence.

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 is due to run until 31 March 2021. This measure is aimed at helping businesses recover from the impacts of COVID-19.

The Government keeps all taxes under review, and any future tax decisions will be made at Budget.