VAT raised over £130 billion in 2019/2020. It is a vital source of revenue for the Exchequer and plays an important part in funding the Government’s spending priorities including hospitals, schools and defence.
A temporary VAT reduction therefore would come at a considerable cost to the Exchequer.
In light of the COVID-19 outbreak, the Treasury have implemented 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.