Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the temporary VAT reduction for the (a) hospitality sector and (b) other sectors that are most financially affected by the covid-19 outbreak.

The temporary VAT reduced rate came into effect on 15 July 2020 and was initially scheduled to end on 12 January 2021.

In order to continue supporting the cash flow and viability of over 150,000 businesses and to protect 2.4 million jobs, the Government extended the temporary reduced rate of VAT (five per cent) to goods and services supplied by the tourism and hospitality sectors until 31 March 2021.

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