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<p>The VAT reduced rate for the hospitality sector was a temporary measure designed
to support the cash flow and viability of sectors that have been severely affected
by COVID-19. It was appropriate that as restrictions were lifted and demand for goods
and services in these sectors increased, the temporary tax reliefs were first reduced
and then removed in order to rebuild and strengthen the public finances.</p><p> </p><p>According
to OBR forecasts, VAT will have raised approximately £135 billion in 2021/22, helping
to fund key spending priorities such as important public services, including the NHS
and policing. In addition, this request should be viewed in the context of over £50
billion of requests for relief from VAT received since the EU referendum.</p><p> </p><p>While
there are no plans to reduce the rate of VAT on food, beverages, pubs or the wider
hospitality industry, the Government keeps all taxes under review.</p><p> </p>
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