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Extension of VAT Cut Welcomed

East Yorkshire MP Greg Knight is backing the decision by the Chancellor of the Exchequer Rishi Sunak MP to extend the VAT cut on ‘hospitality and tourism’ until March 31st next year.

The move, which follows representations from Sir Greg and other MPs from tourist areas will see a 5% VAT rate applied to the sector until the end of March 2021, which was previously set to revert to 20% in January.

In welcoming the announcement Sir Greg said: “Hospitality and tourism have been two of the most affected sectors by the pandemic, so this targeted support is vital to sustain more than 150,000 businesses and 2.4 million jobs across the UK, including many in East Yorkshire.

Businesses will be free to either pass on the saving to customers through lower prices or to use the VAT cut to help boost their bottom line income hard-hit by the pandemic.