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Written question asked by Perran Moon (Labour) on Monday, 13 July 2026, in the House of Commons. It was due for an answer on Thursday, 16 July 2026 (named day). It was answered by Dan Tomlinson (Labour) on Thursday, 16 July 2026 on behalf of the Treasury.

Hospitality Industry: VAT

Question

To ask the Chancellor of the Exchequer, what assessment she has made of the VAT burden on hospitality businesses.

Answer

At £90,000, the UK has the second highest registration threshold among all 38 OECD countries, which keeps the majority of businesses, including hospitality businesses, outside the VAT system.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. The UK’s standard VAT rate is close to the OECD average of 19.3 per cent.

The Government is supporting hospitality through targeted measures, including permanently lower business rates multipliers, a £4.3 billion business rates support package to protect ratepayers seeing large bills increases as a result of the 2026 revaluation, and the temporary Great British Summer Savings scheme, which will reduce VAT from 20 per cent to 5 per cent on eligible family attractions and children's menu meals between 25 June and 1 September.

Secondary information

Type
Written question
Reference
18331
Session
2026-27
Subjects
VAT Hospitality industry
Link
View this Written question on www.parliament.uk