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VAT rate in the hospitality sector

EDM (Early Day Motion) 525: tabled on 18 October 2021

Tabled in the 2021-22 session.

This motion has been signed by 14 Members. It has not yet had any amendments submitted.

Motion text

That this House recognises the ongoing impact of the covid-19 pandemic on the hospitality industry; acknowledges that the VAT reduction to 5% was a lifeline for the sector and is disappointed that this rate cannot be maintained beyond 30 September 2021; appreciates that a 12.5% rate is of real benefit in supporting the industry; recognises the industry is also experiencing unparalleled rises in the cost of doing business with utility costs having risen by over a third, food inflation running well beyond the reported 4% level, and with additional transport costs driving up the overall cost of consumables; and therefore calls on the Government to extend the 12.5% rate of VAT beyond March 2022, to at least September 2022, to enable the sector to continue to recover from the impact of covid-19.