Hospitality Industry: VAT
Commons · Question 9562 · Tabled 15 Jun 2026 · Treasury · Official record
Answered 22 Jun 2026
Question
Asked by Sir Julian Smith
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of reducing the rate of VAT for the hospitality sector on (a) business viability, (b) job retention, and (c) the affordability of food and drink for consumers.
Answer
Answered by Dan Tomlinson, 22 Jun 2026
VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Reduced rates of VAT come at a significant cost to the Exchequer and reduce the revenue available for vital public services. Any reduction in ta...