Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of reducing VAT on supplies relating to the hospitality sector.

The Government has published the Tourism Recovery Plan to help the sector return to pre-pandemic activity levels as quickly as possible. Since the start of the pandemic, over £37 billion has been provided to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks.

The previous VAT relief for tourism and hospitality cost over £8 billion. Reintroducing it would come at a significant further cost, reducing the money available to help fund key spending priorities, including important public services, such as the NHS, education and defence.

While there are no plans to reduce the rate of VAT paid by hospitality businesses, the Government keeps all taxes under review.