Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment his Department has made of the impact of VAT rates on (a) pubs, (b) brewers and (c) consumers in Rushcliffe.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate are limited and must be balanced against their impact on the public finances.

HMRC estimates that the cost of changing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services to the Reduced Rate of 5 per cent would be around £17 billion in 2026-27, rising to £19.5 billion in 2030-31.