Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what recent discussions he has had with representatives of the hospitality sector on the impact of the current rate of VAT on small businesses.

The Department for Business and Trade regularly engages with representatives from the hospitality sector, including through the hospitality sector council to understand the challenges they face, including the impact of VAT on small businesses.

VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. Whilst there are no current plans to reduce VAT, HM Treasury keep all taxes under review.

To support businesses, we are reforming the business rates system and plan to introduce permanently lower business rates for retail, hospitality, and leisure properties with a rateable value under £500,000.