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Hospitality Industry and Tourism: VAT

Question for Treasury

UIN 62377, tabled on 22 June 2020

To ask the Chancellor of the Exchequer, if he will make it his policy to reduce VAT on tourism and hospitality-related activities to 5 per cent.

Answered on

26 June 2020

VAT raised £130 billion in 2019/2020. It is a major source of revenue for the Exchequer and plays an important part in funding the Government’s spending priorities including hospitals, schools and defence.

Reducing VAT on tourism and hospitality-related activities would come at a considerable cost to the Exchequer. However, the Government keeps all taxes under review.

In light of the COVID-19 outbreak, the Chancellor has announced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates worth more than £300 billion.

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