Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent comparative assessment his Department has made of the impact of the level of VAT rates on the hospitality sector in (a) the UK and (b) the EU.

Since the start of the pandemic, over £37 billion has been provided to the tourism, leisure and hospitality sectors in the form of grants, loans and tax breaks.

At £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD, which keeps the majority of UK businesses out of VAT. VAT reliefs in the UK are among the highest in the OECD and mean that 45 per cent of economic activity is not subject to VAT.