Take-away Food: VAT
The question
To ask the Chancellor of the Exchequer, whether she has had any discussions with relevant stakeholders on lowering the VAT rate on hot takeaway foods.
Answered by Dan Tomlinson
Ministers and officials receive representations on a variety of VAT issues. The Government engages regularly with a wide range of stakeholders, including businesses and representative bodies, to inform the policy development process.
VAT is a broad-based tax on consumption, and the standard rate of 20 per cent applies to most goods and services. VAT is forecast to raise around £180 billion in 2025-26.
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 Government keeps all taxes under review, and decisions on VAT rates are taken by the Chancellor at fiscal events.
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