SNP challenges Chancellor to maintain VAT reduction for tourism and hospitality

The Scottish National Party (SNP) has challenged the Chancellor to maintain the reduced VAT rate for struggling hospitality and tourism businesses right through next year at the very least.

The call comes as the UK government is set to increase the VAT rate in 2022 to the pre-pandemic level of 20% – up from the current temporary 12.5% rate.

Commenting, the SNP’s Shadow Chancellor Alison Thewliss MP said: “Tourism and hospitality businesses are facing a tough winter – with rising fuel, staffing and supply costs.

“The Covid pandemic has dealt a heavy blow to many in the industry, pushing them into financial hardship and debt. It is critical that the UK government takes the necessary steps to protect businesses at this time – and not prematurely pull support from under their feet.

“Maintaining the 12.5% VAT rate right through next year – not putting it up to 20% – would bring much needed financial breathing space and relief for our hospitality and tourism businesses.”