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The government has said it has “no plans” to cut hospitality VAT to 10% in response to a petition launched by Andy Lennox, who runs the Fired Up hospitality group.
The petition was launched last year and has over 17,000 signatories and calls on the government to fix the current “disproportional” tax system which “should be changed alongside changes in tax on supermarkets and online sales”.
However, in response to a petition yesterday the government said: “The VAT relief for the hospitality sector was a temporary measure designed to support the viability of sectors that had been severely affected by Covid-19. There are no plans to reintroduce it.”
It added that VAT is the UK’s third largest tax forecast to raise £161bn in 2023/24, helping to fund “key spending priorities” such as important public services, including the NHS, education, and defence. The previous VAT relief for tourism and hospitality cost over £8bn and introducing a 10% would come at a “significant further cost”.
The statement added: “The Government recognises the important contribution pubs and hospitality venues make to our society and is committed to supporting this sector through the duty system by reducing the tax burden on products sold in these venues.
“This is why, as part of the historic alcohol duty reform, the Government announced that it will ensure a duty differential between on and off-trade, reducing the duty on draught beer and cider by 9.2% and draught wine, spirits and other fermented products by 23% from 1 August 2023.”
While the Government has no current plans to reduce the rate of VAT for the hospitality sector, it concluded that all taxes will continue to be kept under review.
If the petition reaches 100,000 signatures it will be considered for debate in Parliament.
