Chancellor announces VAT cut for tourism and hospitality.

In a bid to protect jobs the Chancellor has announced today VAT applied on most tourism and hospitality activities will be cut from 20% to 5%.

The tourism and hospitality sectors are massive employers in the UK and have been severely impacted by the pandemic due to necessary closures to protect public health. 80% of hospitality firms stopped trading in April and 1.4 million hospitality workers have been furloughed – the highest proportions of any sector.

The VAT cut will apply to businesses such as eat-in or hot takeaway food from restaurants, cafes and pubs, accommodation in hotels, B&Bs, campsites and caravan sites and attractions like cinemas, theme parks and zoos.

All these and more will see VAT reduced from Wednesday 15th July until January 12th 2021, from 20% to 5%.

It is hoped this will give these businesses the confidence to maintain their staff, as more people get through the door and business activity kick-starts again.

For more information:

https://www.gov.uk/government/news/rishis-plan-for-jobs-will-help-britain-bounce-back

Or see the full speech here https://www.gov.uk/government/speeches/a-plan-for-jobs-speech