Personal Care Services: VAT

(asked on 16th March 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of temporarily reducing VAT to 5 per cent for businesses in the hairdressing and beauty industry.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 22nd March 2021

The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of about 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors.

This relief comes at a significant cost to the Exchequer, and there are no plans to extend the scope of the reduced rate. This policy will cost over £7 billion.

The Government has made available a wider package of support worth billions which includes extensions to the furlough scheme; extensions to the COVID-19 loan schemes; grant support; a business rates holiday for all retail, hospitality and leisure business properties; mortgage holidays; enhanced Time to Pay for taxes; and VAT deferrals.

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