Question to the HM Treasury:
To ask Her Majesty's Government what estimate they have made, if any, of the cost of reducing Value Added Tax for the hospitality and tourism sector to five per cent.
The reduced rate of VAT has been designed as a temporary measure. As restrictions are lifted and demand for goods and services in the tourism and hospitality sectors increases, this relief will be reduced and eventually removed in order to rebuild and strengthen the public finances. This policy will cost the Exchequer over £7 billion. While the Government keeps all taxes under review, there are no plans to make the reduced rate of VAT permanent.