Hotels

BHA urges gov to extend reduced rate of VAT

It comes after many members of the BHA reported that business was at least 30% lower in the peak period of December than they had hoped for

Members of the Bristol Hoteliers Association (BHA) have made a fresh plea to the government to extend the current reduced rate of VAT for their businesses.

It comes after many members of the BHA reported that business was at least 30% lower in the peak period of December than they had hoped for.

In July 2020, the government announced a temporary 5% reduced rate of VAT for the hospitality industry. This was increased to 12.5% in October 2021.

However, at present, this rate will run until 31 March, after which VAT is due to rise back to the full rate.

Raphael Herzog, chair, BHA, said: “January and February are looking extremely slow for us, on the back of a very disappointing Christmas period.

“Right now we have very little revenue, increases in costs and continuing staff difficulties. Not only is recruitment hard – in terms of available recruits and costs – but many businesses are losing people temporarily because they have to isolate.”

He added: “Some hotels have had more than 20 staff in one week unable to work because they have tested positive or have to self-isolate.

“We need more support, not only from the government, but from other companies and customers to help with our long-term recovery from the impact of the pandemic.”

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