Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing VAT to 5 per cent for hospitably businesses for (a) tourism and (b) hospitality.

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.

VAT is the UK's third largest tax forecast to raise £161 billion in 2023/2024, helping to fund key spending priorities such as important public services, including the NHS, education and defence. The previous VAT relief for tourism and hospitality cost over £8 billion and reintroducing it would come at a significant further cost.

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