Hospitality Industry urges Chancellor to hold off VAT rise
We are backing the #VATsEnough campaign, ahead of the Chancellor’s Spring Statement next week, as hospitality leaders are urging the Government to hold VAT at 12.5%.
It’s good news that hospitality firms are collaborating to urge the Government to hold VAT at 12.5% ahead of its planned reinstatement to 20% after March.
A report, commissioned jointly by the four bodies, found that a permanent rate of 12.5% VAT will bring VAT on hospitality and attractions in line with the European average (at 20% it is nearly double), and set off a virtuous cycle of industry investment and growth, helping ‘level up’ UK regions. With support from the Government, this industry is uniquely positioned to drive economic recovery from the pandemic, while continuing to play a key role in fighting loneliness and encouraging community cohesion.
We work with many hospitality businesses, and the last two years have been difficult for many. They now need time to breathe, to build back better without the threat of increased rates. As this article suggests, the hospitality industry will generate growth and jobs across the whole of the UK.
