Hospitality Industry: VAT
The question
To ask the Chancellor of the Exchequer, pursuant to the Answer of 28 January 2026 to Question 107755 on Hospitality Industry VAT, if he will make an assessment of the potential implications for his policies of lessons learned from (a) France, (b) Germany, (c) Italy and (d) the Republic of Ireland on introducing hospitality VAT rates.
Answered by Dan Tomlinson
The Government is aware that some European countries apply reduced VAT rates to hospitality, reflecting different tax systems, policy choices and wider fiscal contexts.
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Reduced rates of VAT come at a significant cost to the Exchequer, reduce the revenue available for vital public services, and must represent value for money for the taxpayer.
The Government keeps all taxes under review, with decisions on VAT rates taken by the Chancellor at fiscal events.
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