To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of extending business rates exemptions and the temporary VAT reduction for businesses in the wedding industry to relieve the financial pressure on the sector resulting from the covid-19 outbreak.
16 February 2021
This year the Government has provided an unprecedented business rates holiday for eligible retail, hospitality and leisure properties due to the direct adverse effects of COVID-19, worth over £10 billion, and has frozen the business rates multiplier for all businesses for 2021-22.
The temporary VAT reduced rate came into effect on 15 July 2020 and was initially scheduled to end on 12 January 2021. In order to continue supporting the cash flow and viability of over 150,000 businesses and to protect 2.4 million jobs, the Government extended the temporary reduced rate of VAT (five per cent) to goods and services supplied by the tourism and hospitality sectors until 31 March 2021. The Government continues to keep all taxes under review, and any tax decisions will be made at Budget.
The Government has provided various schemes to support firms overall, including Coronavirus Business Interruption Loans, Bounce Back Loans, grants and VAT deferrals.