Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make an urgent assessment of the potential merits of reducing the VAT rate for on street retail shopping.

Raising over £130 billion in 2019/2020, VAT is an important source of revenue for the Exchequer and plays an important part in funding the Government’s spending priorities including hospitals, schools and defence.

A VAT reduction would therefore come at a considerable cost to the Exchequer.

In light of the COVID-19 outbreak, the Chancellor has announced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates worth more than £300 billion.

The Government keeps all taxes under review.