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Hospitality Industry: VAT

Question for Treasury

UIN 136001, tabled on 11 January 2021

To ask the Chancellor of the Exchequer, what assessment the Government has made of the effect of the temporary reduction in VAT for hospitality, holiday accommodation and attractions on levels of (a) growth, (b) employment and (c) tax revenues of companies in the hospitality sector and its supply chain.

Answered on

19 January 2021

To support the cash flow and viability of over 150,000 businesses and to protect 2.4 million jobs, the Government has applied a temporary reduced rate of VAT (5 per cent) to goods and services supplied by the tourism and hospitality sectors until 31 March. This relief is estimated to be worth over £2 billion to the tourism and hospitality sectors.

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