Hospitality Industry: VAT
Commons · Question 6985 · Tabled 4 Jun 2026 · Treasury · Official record
Answered 12 Jun 2026
Question
Asked by Euan Stainbank
To ask the Chancellor of the Exchequer, what estimate she has made of revenue lost in 2027/28 by permanently reducing VAT to 5% for hospitality businesses.
Answer
Answered by Dan Tomlinson, 12 Jun 2026
HMRC estimates that the cost of changing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services to the Reduced Rate of 5 per cent would be around £17 billion in 2027-28The Government recognises the significant contributio...