Hospitality Industry and Tourism: VAT
The question
To ask the Chancellor of the Exchequer, whether her Department plans to reduce the rate of VAT for the hospitality and tourism sector.
Answered by James Murray
The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.
Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer. Exceptions to the standard rate have always been limited and balanced against affordability considerations. The exceptional VAT relief for tourism and hospitality during the Covid-19 pandemic cost over £8 billion. The Government has no current plans to change the VAT rate for the hospitality and tourism sector.
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