Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of introducing (a) a reduced rate of VAT for in-person shopping and (b) tax relief for high street businesses to support employment.

VAT is a broad-based tax on consumption and the standard rate of 20% applying to most goods and services. Exceptions to the standard rate are limited as tax breaks reduce the revenue available for vital public services and must be balanced against affordability.

At Budget 2026, the Government announced a package to support high streets which means that all Retail, Hospitality and Leisure (RHL) properties in England will see their business rates either frozen in real terms, reduced, or cut to zero. The Government is also supporting employment, including the £3,000 Youth Jobs Grant for employers recruiting eligible 18 to 24-year-olds and the Employment Allowance.