To ask the Chancellor of the Exchequer, if his Department will extend the (a) reduced VAT rate of 5 per cent and (b) business rates relief to the wedding industry.
8 March 2021
The temporary reduced rate of VAT was introduced on 15 July 2020 to support the cash flow and viability of about 150,000 businesses and protect over 2.4 million jobs in the hospitality and tourism sectors.
This relief comes at a significant cost to the Exchequer, and there are no plans to extend the scope of the reduced rate. This policy will cost over £7 billion, and while some businesses in some sectors are disappointed, a boundary for eligibility had to be drawn.
Due to the direct adverse effects of COVID-19, the Government has extended the unprecedented business rates holiday for eligible retail, hospitality and leisure properties for three months, and will provide up to 66% relief for the rest of 2021-22 financial year. The Government has also frozen the business rates multiplier for all businesses for 2021-22.
The Government has made available a wider package of support worth billions which includes extensions to the furlough scheme; extensions to the COVID-19 loan schemes; grant support; a business rates holiday for all retail, hospitality and leisure business properties; mortgage holidays; enhanced Time to Pay for taxes; and VAT deferrals.