Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the effect of the temporary changes in VAT on businesses in the tourism and hospitality sectors in (a) Stoke-on-Trent and (b) Staffordshire.
The Government has applied a temporary reduced rate of VAT (5 per cent) to goods and services supplied by the tourism and hospitality sectors. This relief came into effect on 15 July 2020 and will end on 31 March 2021.
The temporary reduced rate aims to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs across the UK.
This relief is estimated to be worth over £3 billion to the tourism and hospitality sectors.