VAT: Hospitality and Tourism

Summary

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the 20% VAT rate on the competitiveness of the UK hospitality and tourism sectors compared with European nations with rates of 10–13%.

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Timeline

1. 18 November 2025

   Written question

   To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the 20% VAT rate on the competitiveness of the UK hospitality and tourism sectors compared with European nations with rates of 10–13%.

   Source: Commons

2. 24 November 2025

   Answer

   The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK. VAT is a reserved tax, applying UK wide. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies...

   Source: Written answer

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• · Treasury · Answering body

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