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Pressure mounts on chancellor to extend hospitality VAT cut until April 2023

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The sector is putting more pressure on the government to extend the VAT cut for hospitality until April 2023, as a new petition launches from Tax Payers Alliance.

The petition is calling on the chancellor to extend the current reduced rate of 5% until next year, which is estimated to generate £15.7bn of savings for consumers and the hospitality industry across the next 12 months and the following year.

The TPA is also asking for the cut to include the sale of alcoholic drinks.

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Under the current scheme, the 5% rate – usually 20% – is to end in September, giving hotels just five months to claw back some revenue lost during the lockdowns.

The extended VAT cut will help the hospitality sector support jobs, boost footfall, keep down the cost of living and help the economy bounce back.

To sign the petition, click HERE

In a House of Lords debate, Lord Smith also called for the VAT cut for hospitality to be extended until April 2023.

Tags : ChancellorhospitalityVAT cut
Zoe Monk

The author Zoe Monk

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