To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of extending (a) business rates relief and (b) the temporary VAT reduction for businesses in the hospitality industry; and what his Department's long-term strategy is on support for people who work in that sector.
1 March 2021
This year, due to the direct adverse effects of COVID-19, the Government has provided an unprecedented business rates holiday for eligible retail, hospitality and leisure properties worth over £10 billion. The Government has also 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. The Government extended the reduced rate of VAT (5 per cent) until 31 March 2021.
The Budget will set out the next phase of the Government’s plans to tackle the virus, protect jobs and support business.