VerbatimParliament, as it happens

Hospitality Industry: VAT

Asked by Tim FarronLiberal DemocratTreasuryTabled Answered 8 January 2026UIN 101344

The question

To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential cost to the public purse of lowering the VAT rate payable by hospitality businesses to (a) 15 per cent, (b) 10 per cent and (c) 5 per cent.

Answered by Dan Tomlinson

HMRC estimates that the cost of changing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services to the Reduced Rate of 5 per cent would be around £17 billion in 2026-27, rising to £19.5 billion in 2030-31.

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

Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →

Open this question in Verbatim →

Every written question, searchable

155,000 questions tabled since the election, with the answer each department gave — and the ones still unanswered, with the clock running. Free to search.

Search written questions →Read on Verbatim