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Amusement Arcades: Coronavirus

Question for Treasury

UIN 102770, tabled on 13 October 2020

To ask the Chancellor of the Exchequer, what plans he has to provide support to (a) seaside and (b) high street arcades; and if he will extend the reduction in the rate of VAT to 5 per cent to include that sector.

Answered on

20 October 2020

The Government initially cut the rate of VAT applied to hospitality, accommodation and attractions, from 20 per cent to 5 per cent, for a period of six months to 12 January 2021. The Government has extended this relief, and it will now end on 31 March 2021. The reduced rate aims to support the cash flow and viability of over 150,000 businesses in the affected sectors and will help protect 2.4 million jobs.

Any business providing relevant hospitality, accommodation or attractions is able to benefit from the relief, wherever the business is located in the UK. Further information on this is available on GOV.UK. This policy will cost over £3 billion, and while some businesses in some sectors are disappointed, a boundary for eligibility had to be drawn.

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