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Question for Treasury

UIN 154801, tabled on 19 February 2021

To ask the Chancellor of the Exchequer, what representations he has received on maintaining the temporary VAT rate of 5 per cent beyond 31 March 2021.

Answered on

24 February 2021

The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of over 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and is due to run until 31 March 2021.

This policy will cost over £2 billion and is a temporary measure. The Government keeps all taxes under review, and all stakeholder views are carefully considered. Any future decisions on tax policy will be made at Budget.

The Government has announced a significant support package to help businesses from a range of sectors through the winter months, which includes an extension of the Coronavirus Job Retention Scheme, an extension of the Self-Employment Income Support Scheme grant, and an extension of the application window for the Government-backed loan schemes.

Answered by

Named day
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