Hospitality firms across the UK are urging Chancellor Rishi Sunak to extend the VAT reduction for a year due to the impact of coronavirus.
Last year, the VAT reduction went from 20 per cent to five per cent to support the hospitality, leisure and tourism industry.
The cut ends on 31 March, which worries the sectors as prices could soar on meals, outings and tickets.
UKHospitality organised a joint letter, with support from 166 companies, including hotel chains, which urges Sunak to extend the VAT reduction and business rates holiday in the 2021 Budget.
The letter reads: “Given the right fiscal support in March and safe and sustainable trading conditions in place, we can help this country ‘bounce back’ from the pandemic in a safe and responsible way.”
Extending the VAT cut for a year “will be critical to boosting employment, particularly in 16-24-year-olds”.
“There is no point in the Government undoing all the good work it has done in 2020 by pulling the rug from under us as we get back on our feet,” says Kate Nicholls, CEO of UKHospitality.
For more information or advice on related matters, please contact our experts today.