Hospitality Industry: VAT

Summary

To ask the Chancellor of the Exchequer, whether she has made an estimate of the potential impact of reducing VAT to 10 per cent for food and beverage hospitality businesses on revenue to her Department.

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Timeline

1. 15 June 2026

   Written question

   To ask the Chancellor of the Exchequer, whether she has made an estimate of the potential impact of reducing VAT to 10 per cent for food and beverage hospitality businesses on revenue to her Department.

   Source: Commons

2. 23 June 2026

   Answer

   At £90,000, the UK has the second highest registration threshold among all 38 OECD countries, which keeps the majority of businesses outside the VAT system. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods a...

   Source: Written answer

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• · Treasury · Answering body

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