VAT Exemptions
The question
To ask the Chancellor of the Exchequer, whether her Department plans to make an assessment of the potential merits of implementing a targeted VAT relief to 15% for (a) food, (b) alcohol and (c) tickets for (i) grassroots and (ii) cultural nightlife businesses.
Answered by James Murray
The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.
At Autumn Budget the Chancellor announced a duty cut on approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint.
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