Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the merits of proposals to cut VAT for hospitality businesses to 10 per cent.

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.

VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.

HMRC estimates that the cost of reducing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services to 10 per cent would be in 2026-27 £10.5 billion.