VAT is due to rise back up to 20% in April 2022 and UK Hospitality believes that a failure to act “could risk the future of hotels, cafes, pubs and restaurants across the country”. 

The consortium called on the Chancellor Rishi Sunak to commit to introducing a permanent low rate of VAT for hospitality and tourism in his Autumn Budget on 27th October.  However, there was no such commitment in the Budget.

UK Hospitality argues that a lower VAT rate for hospitality and tourism has helped safeguard the workforce, kept prices affordable for customers and enabled the sector to contribute to the national economic recovery. “Given the rising costs that are coming through from suppliers and the labour market, maintaining a low rate is now more vital than ever.”

VAT is due to rise back up to 20% in April 2022.  Click here to lobby your MP to maintain a lower rate of VAT for tourism and hospitality.