Written Question·Treasury·UIN 108537
Hospitality Industry and Retail Trade: VAT
Tabled: 26 January 2026
Answered: 3 February 2026
Question
Neil Duncan-Jordan
Labour — Poole
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of reducing the rate of VAT on retail, hospitality and leisure from 20% to 13% on that sector.
Answer
Dan TomlinsonThe Government recognises the significant contribution made by retail and hospitality businesses to economic growth and social life in the UK. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. T...
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