Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made on the potential merits of maintaining the current 12.5 per cent rate of VAT and providing 100 per cent business rates relief to support hospitality businesses.

This question was answered on 4th February 2022
The Government has provided over £400 billion of direct support to the economy during this financial year and the last, which has helped to safeguard jobs, businesses, and public services in every region and nation of the UK through the pandemic.

The reduced rate of VAT for hospitality and tourism has cost over £8 billion and will continue to support businesses until 31 March 2022. There are no plans to extend the length of this relief. Eligible businesses in the retail, hospitality, and leisure sectors in England will benefit from business rates relief worth £6 billion in the year 2021-22. All taxes are kept under review, but it is appropriate that the temporary tax reliefs are first reduced, and then removed, in order to strengthen and rebuild the public finances.