Chancellor Rishi Sunak has today announced a cut to VAT for the hospitality and tourism industry.
In his televised statement during Prime Minister’s Questions, Rishi Sunak told MPs that “hardship lies ahead”, but he has launched several interventions to alleviate the financial crisis.
As part of a financial package, intended to boost the economy following the harsh consequences of COVID-19, the Chancellor confirmed that he will temporarily cut VAT on food, accommodation and attractions from 20% to 5% effective from Wednesday 15th July.
Reacting to the news, Ian Wright, Chief Executive of the Food and Drink Federation says, “We hope these measures will lead to a significant boost in demand for the hundreds of manufacturers who supply into hospitality and the out of home sectors and help them to manage increased supply costs.”
The welcome cut will help hospitality and tourism businesses as well as those who supply to the industries.
If your business is affected by the VAT cut and you require a VAT adjustment from CPiO, in the first instance please contact your CPiO account manager or call 0344 880 6140 and your enquiry will be directed accordingly.