Written Question·Treasury·UIN 108537

Hospitality Industry and Retail Trade: VAT

Tabled: 26 January 2026
Answered: 3 February 2026

Question

Neil Duncan-Jordan

LabourPoole

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 Tomlinson
The 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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