Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of reducing VAT on sales of alcohol to support the pub industry.

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 is due to run until 31 March 2021.

The Government has also 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. Alcohol duty was frozen at Budget 2020 to help pubs and the alcoholic drinks sector.