Due to the prolonged impact of coronavirus on the hospitality industry, firms within this sector urge Chancellor Rishi Sunak to extend the VAT reductions for a year in the Budget.
In 2020, the VAT reduction went from 20 per cent to five per cent to support the hospitality, leisure and tourism industry.
However, on 31 March, the cut ends which worries the sector as prices could soar on meals, outings and tickets.
With support from 166 companies, UKHospitality organised a joint letter urging Sunak to extend the VAT reduction and business rates holiday in the 2021 Budget on 3 March.
“Given the right fiscal support in March and safe and sustainable trading conditions in place, we can help this country ‘bounce back’ from the pandemic in a safe and responsible way,” the letter says.
Extending the VAT cut for a year “will be critical to boosting employment, particularly in 16-24-year-olds”.
“There is no point in the Government undoing all the good work it has done in 2020 by pulling the rug from under us as we get back on our feet,” says Kate Nicholls, CEO of UKHospitality.