Written Question·Treasury·UIN 104471

Hospitality Industry: VAT

Tabled: 9 January 2026

Answered: 19 January 2026

Named Day

Question

Tim Farron

Liberal Democrat — Westmorland and Lonsdale

To ask the Chancellor of the Exchequer, what estimate her Department has made of the costs to the exchequer of reducing VAT for hospitality businesses to (a) 15%, (b) 10%, (c) 5% and (d) 0%.

Answer

Dan Tomlinson

HMRC estimates that the cost of reducing the 20 per cent Standard Rate of VAT on all accommodation and food and beverage services would be as follows in 2026-27: (a) to 15%: £5 billion, (b) to 10%: £10.5 billion, (c) to 5%: £17 billion, (d) to 0%: £23.5 b...

ⓘ

This is an extract from the Parliament API. Search the full answer on Parliament.uk (UIN 104471) →