Written Question·Treasury·UIN 73011
Hospitality Industry: VAT
Tabled: 29 August 2025
Answered: 5 September 2025
Question
Neil Duncan-Jordan
Labour — Poole
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of reducing VAT on the hospitality sector in line with rates in other European countries on (a) the economy and (b) the tourist industry.
Answer
Dan TomlinsonThe Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Tax breaks reduce the revenue available for v...
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