Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the feasibility of extending the reduced rate of VAT for hospitality, holiday accommodation and attractions beyond 12 January 2021 to further support business in those sectors.

The Government has temporarily applied a reduced rate of VAT (5 per cent) to tourist attractions and goods and services supplied by the hospitality sector. It came into effect on 15 July 2020 and will end on 12 January 2021 and applies across the UK.

Applying the reduced rate for a longer period would come at a significant cost to the Exchequer. However, the Government keeps all taxes under review.