Greg Urges Chancellor to ‘Back Local Businesses’ in Budget

East Yorkshire MP Greg Knight is calling on the Chancellor of the Exchequer Rishi Sunak MP to announce in this year’s Budget that he will keep the reduced rate of VAT on hospitality and tourism at 5% beyond the current March deadline.

Last year the Government cut VAT from 20% to 5% for the hospitality sector following representations from MPs, including Sir Greg, but the tax is due to revert to 20% from 31^st March unless the Chancellor announces otherwise in his Budget on 3^rd March.

Sir Greg said: “Due to the lockdown, hospitality and tourism businesses have been unable to reap the full benefits of the reduction in VAT.  Hospitality venues including pubs, have been one of the sectors most affected by the pandemic so it is important that this industry, which supports more than 2.4 million jobs across the UK, is supported, to help it get back on its feet in 2021”. 

Sir Greg added: “It is crucial for businesses and the economy that we do not remove economic support too early and thus cripple businesses or risk more people losing their jobs. So, amongst other support packages, I want to see an extension to the present VAT cut”.