Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of extending the reduced rate of VAT on hospitality goods and services.
The Government has been clear that the reduced rate of VAT is a temporary measure. It is right that, as restrictions are lifted and demand for goods and services in the tourism and hospitality sectors increases, this relief is reduced and eventually removed in order to rebuild and strengthen the public finances. This policy will cost the Exchequer over £7 billion and, while the Government keeps all taxes under review, there are no plans to make the reduced rate of VAT permanent.