Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will reduce VAT in the hospitality sector to help pubs and restaurants trade successfully in the context of the cost of living crisis.

The VAT reduced rate for the hospitality sector was a temporary measure designed to support the cash flow and viability of 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.

VAT is the UK’s third largest tax forecast to raise £154 billion in 2022/23 helping to fund key spending priorities such as important public services, including the NHS and policing. In addition, this request should be viewed in the context of over £50 billion of requests for relief from VAT received since the EU referendum.

While there are no plans to reduce the rate of VAT on food, beverages, pubs or the wider hospitality industry, the Government keeps all taxes under review.