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.