To ask the Chancellor of the Exchequer, what the total cost is to the public purse of the reduced rate of VAT for the (a) hospitality sector, (b) accommodation and (c) attractions to date.
Answered on
19 January 2021
The Exchequer cost of the temporary reduced rate of VAT for hospitality, accommodation and attractions until 31 March 2021 was set out at Spending Review 2020. The estimated cost is £2,540m, as shown in Table 1.1: https://www.gov.uk/government/publications/spending-review-2020-documents.
This costing has been certified by the Office for Budget Responsibility.
The actual cost to date is not available owing to the lags in VAT reporting, and the final cost will depend on the level of demand and the extent of restrictions during the period of the relief.