Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made a recent assessment of the potential merits of reducing the 20 per cent VAT rate for for the hospitality sector in the context of increased energy and food costs.

The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of around 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors. This relief ended on the 31 March 2022.

The Government has been clear that the reduced rate of VAT for hospitality and tourism was a temporary measure designed to support the sectors that have been severely affected by COVID-19. It was appropriate that, as restrictions were lifted, and demand for goods and services in these sectors increased, the temporary tax reliefs were first reduced, and then removed, in order to rebuild and strengthen the public finances. While we keep all taxes under review, there are no plans to reintroduce a reduced rate of VAT from tourism and hospitality.