Hospitality Industry: Tax Allowances

(asked on 19th February 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of extending (a) the reduction of VAT to 5 per cent for hospitality businesses beyond March 2021 and (b) business rates relief for financial year 2021-22 for hospitality businesses.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 24th February 2021

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 has also provided an unprecedented business rates holiday for eligible retail, hospitality and leisure properties due to the direct adverse effects of COVID-19, worth over £10 billion, and has frozen the business rates multiplier for all businesses for 2021-22.

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

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