Commons Sense

House of Commons · Ministers' Questions

Support for Businesses: Covid-19

Tuesday 1 December 2020 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 0 Not answered 0

Key points

  • The Government has provided a support package worth 280 billion to protect jobs and livelihoods affected by the pandemic.
  • The temporary reduced rate of VAT was introduced on 15 July to support over 150,000 businesses and protect 2.4 million jobs in hospitality and tourism.
  • The VAT cut for hospitality and tourism sectors will run until 31 March of the following year.

Topics (select to filter)

Questions & Answers

Q1 James Sunderland
Economy
Context

The question arises from the significant economic disruption caused by the pandemic, affecting business operations and employment across the UK.

Question

What fiscal steps is his Department taking to support businesses affected by the covid-19 outbreak?

Answer from John Glen

The Government recognise the extreme disruption that the pandemic has caused to business, employment and the nation's economy, and our goal remains to protect people's jobs and livelihoods. That is why we have provided one of the most comprehensive and generous packages of support, worth £280 billion.

Answered
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Q2 James Sunderland
Taxation
Context

The question addresses the current VAT reduction measures introduced to support businesses in specific sectors such as hospitality, leisure, and personal care. The temporary reduced rate was set to end on 31 March next year.

Question

Is the Treasury willing to extend the VAT cut to the hospitality, leisure and personal care sectors, and will it perhaps encourage businesses to pass on that VAT saving to consumers?

Answer from John Glen

The temporary reduced rate of VAT was introduced on 15 July to support the cash flow and viability of more than 150,000 businesses and protect 2.4 million jobs in the hospitality and tourism sectors, and it will run now until 31 March next year. This obviously comes at a considerable cost to the Exchequer, and while we keep all taxes under review, there are no plans to extend it further. Although the Government want businesses to pass on the benefit to customers if they can, obviously decisions on prices are ultimately for businesses rather than the Government.

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