VAT: Coronavirus

(asked on 6th May 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential effect on consumer spending of reducing the rate of VAT during the covid-19 outbreak.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 14th May 2020

VAT raised £130 billion in revenue in 2019/2020 for the Exchequer and plays an important part in funding the Government’s spending priorities, including hospitals, schools and defence.

Reducing the standard rate would come at a considerable cost to the Exchequer. However, the Government keeps all taxes under review.

In response to the COVID-19 outbreak, the Chancellor has announced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates worth more than £300 billion.

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