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 reduction in VAT to 5 per cent for tourism to amusement arcades.

The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors. This relief already comes at a significant cost of over £7 billion to the Exchequer and, while the Government keeps all taxes under review, there are no plans to extend the scope of the reduced rate.

The Government has introduced a wider package of support worth billions to help businesses through the coronavirus period, which includes extensions to the furlough scheme; extensions to the COVID-19 loan schemes; grant support; a business rates holiday for all retail, hospitality and leisure business properties; mortgage holidays; enhanced Time to Pay for taxes; and VAT deferrals.