Hospitality Industry and Tourism: VAT

Treasury written question – answered on 26th June 2020.

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Photo of Caroline Lucas Caroline Lucas Green, Brighton, Pavilion

To ask the Chancellor of the Exchequer, if he will make it his policy to reduce VAT on tourism and hospitality-related activities to 5 per cent.

Photo of Jesse Norman Jesse Norman The Financial Secretary to the Treasury

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

Reducing VAT on tourism and hospitality-related activities would come at a considerable cost to the Exchequer. However, the Government keeps all taxes under review.

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.

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