Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of reducing VAT for the hospitality sector in Wales to 10%.

VAT is the UK’s third largest tax, forecast to raise £189 billion in 2026/27.   The UK’s VAT system applies UK-wide.

Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate are limited and must be balanced against their impact on the public finances.