RESULT AS UK CHANCELLOR ANNOUNCES VAT REDUCTION

RESULT AS UK CHANCELLOR ANNOUNCES VAT REDUCTION

08 July 2020

Reacting to the announcement for the hospitality sector in the Chancellor’s Summer Statement, Colin Neill, Hospitality Ulster said:

 

“After a long campaign over many years, the announcement of a temporary reduction on food, accommodation and visitor attractions VAT to 5% until January 2021 is a welcome boost. This comes at a time when many in the hospitality sector are fearful for their future, but this will help paint a brighter picture and give businesses a fighting chance to survive and save jobs.”

 

“As businesses face the reality of operating at a reduced capacity for some time to come, ongoing government support is going to be crucial on the long and hard road to recovery. The announcement of an ‘Eat Out to Help Out’ scheme which will give customers 50% off meals up to a cap of £10 per person in August is significant. We need to encourage people to visit our excellent venues once again and this will hopefully help in this regard.”

 

“Even before the Coronavirus pandemic, it was clear the hospitality sector was at a competitive disadvantage in terms of VAT. Sharing a land border with the Republic of Ireland which has a 13.5% VAT rate made it extremely difficult to compete. As we look to rebuild the sector, the Chancellor must look at permanently reducing the UK's 20% hospitality and tourism VAT rate which is one of the highest in Europe if we are to sustain the sector in the long-term.”