Hospitality and tourism bodies call to keep VAT low

26, October 2021

Under the leadership of UKHospitality, the VATsEnough campaign brings together a coalition of the country’s hospitality and tourism businesses.  They are calling on the Prime Minister to keep VAT low.

UKHospitality says: “Lower VAT rates for hospitality and tourism have helped safeguard our workforce, kept our prices affordable for our customers and enabled us to contribute to the national economic recovery. Given the rising costs that are coming through from suppliers and the labour market, maintaining a low rate is now more vital than ever.”

VAT is due to rise back up to 20% in April 2022 from the current rate of 12.5%. UKHospitality argues that “a failure to act could risk the future of hotels, cafes, pubs and restaurants across the country.”  It is calling on the Chancellor Rishi Sunak MP to commit to introducing a permanent low rate of VAT for hospitality and tourism in his Autumn Budget on 27 October.

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