Hospitality Industry and Tourism: VAT

Treasury written question – answered on 12th February 2021.

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Photo of Charlotte Nichols Charlotte Nichols Labour, Warrington North

To ask the Chancellor of the Exchequer, if he will make it his policy to maintain VAT at 5 per cent for supplies of hospitality, hotel and holiday accommodation and admissions to certain attractions in Budget 2021.

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

The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and will run until 31 March 2021.

The Government keeps all taxes under review, and any future decisions on tax policy will be made at Budget.

The Government has announced a significant support package to help businesses from a whole range of sectors through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the Government-backed loan schemes.

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