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Chancellor Rishi Sunak will later this month deliver an autumn budget as well as set out departmental budgets as part of a Whitehall spending review.
But while the Treasury and Mr Sunak might want to keep a close eye on spending due to the massive outlay during the COVID crisis, they are coming under pressure from Conservative MPs to take action in a number of areas on 27 October.
Keep VAT lower for hospitality and tourism
In July last year, the chancellor slashed VAT for the hospitality and tourism sectors from 20% to 5% as part of efforts to boost the UK’s economic recovery after the first coronavirus lockdown.
Mr Sunak later extended the reduced rate until 30 September this year, with an interim 12.5% rate set to remain in place until 31 March next year.
He is now under pressure from some Tories to keep a permanently reduced rate of VAT for the UK’s hospitality and tourism industry.
Eastbourne MP Caroline Ansell told Sky News: “The VAT reduction since 2020 has been mission critical for the tourism and hospitality industry in Eastbourne and across the UK and I think the government should be congratulated for doing so and for extending it.
“The new 12.5% rate until April next year is also really helpful for these sectors as they continue the recovery from the pandemic.
“The chancellor has tough decisions to make to get the balance between keeping the economy ticking over and making sure the books start to be balanced – I don’t envy him at all.
“However, I have written to him asking him to keep the lower rate indefinitely for these sectors.
“Even before the pandemic, there was an excellent lower VAT argument for tourism in particular. It is something European countries do and I think it works.
“So, the point I have made to the Treasury is to look at a VAT…
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Source : skynews
