Personal Care Services: VAT
Commons · Question 87606 · Tabled 3 Nov 2025 · Treasury · Official record
Answered 12 Nov 2025
Question
Asked by John Milne
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of reducing VAT on labour costs to 10% for the hair and beauty sector.
Answer
Answered by Dan Tomlinson, 12 Nov 2025
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Tax breaks reduce the revenue available for vital public services ...