VAT Tourism and Hospitality 2020-10-20
2020-10-20
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
The temporary reduced VAT rate for tourism and hospitality was introduced in July 2020 to support businesses and jobs, but concerns have arisen about its extension and effectiveness.
What recent assessment has been made of the effect of the temporary changes in VAT on businesses in the tourism and hospitality sectors?
The temporary reduced rate for tourism and hospitality came into effect on 15 July 2020, helping over 150,000 businesses and protecting 2.4 million jobs. The scheme was extended to end on 31 March 2021.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
Cheadle's hospitality sector faces further restrictions under tier 3, despite the reduced VAT rate being beneficial. The questioner seeks an extension of the scheme in these areas.
Will the Minister consider extending the reduced VAT scheme further in areas that go into tier 3 so they can benefit from it as businesses in other parts do?
We have extended the VAT reduction and introduced a payment process for those with VAT debt. Additionally, £465 million has been committed to local authorities through the tiering scheme to support high alert areas.
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Assessment & feedback
The answer does not directly address extending the reduced VAT scheme specifically for tier 3 areas.
Response accuracy