Question to the HM Treasury:

To ask Her Majesty's Government when they intend to make a statement about the future of (1) VAT rates, and (2) other fiscal measures in the UK

On 8 July the Chancellor announced a Plan for Jobs to support the UK’s economic recovery by supporting, protecting and creating jobs across all regions and nations of the UK. As part of this plan, and to support over 150,000 businesses and protect 2.4 million jobs following the lifting of the Covid-19 lockdown, the Government will temporarily apply a reduced rate of VAT (5%) to tourist attractions and goods and services supplied by the hospitality sector.

The “hospitality sector” includes accommodation such as hotels, and food eaten-in or hot food taken-out from restaurants, cafes and pubs.

The temporary reduced rate will apply for six months. It will come into effect on 15 July 2020 and end on 12 January 2021 and apply across the UK.

The VAT cut aims to support the hospitality and tourism sector across the UK to re-establish eating out in restaurants, and to help businesses recover from the economic impacts of Covid-19, supporting employment.

Businesses will have one week to prepare before the reduced rate comes into effect, with guidance published on 9 July 2020.

The Chancellor said on 8 July that he will set out a Budget in the Autumn. The exact timing of the next Budget will be a matter for the Chancellor to decide in due course.