Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent representations he has received in support of a reduced UK VAT rate of 5 per cent for tourism attractions and accommodation providers; and if he will make an assessment of the potential benefit to the tourism sector of that proposition in advance of his next Budget.

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

Reducing VAT on tourism and hospitality related activities would come at a considerable cost to the Exchequer. However, the Government keeps all taxes under review.

In light of the COVID-19 outbreak, the Chancellor has pledged 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.