VAT cut for hospitality sector extended for six months, Rishi Sunak announces

The government’s VAT cut to help the hospitality sector during the coronavirus crisis is to be extended for another six months, the Chancellor has announced.

Rishi Sunak told the House of Commons on Thursday that the temporary cut from 20 per cent to 5 per cent would continue until 31 March.

“The final step I'm taking today will support two of the most affected sectors, hospitality and tourism,” he told MPs.

"On current plans, their VAT rates will increase from 5% back to the standard rate of 20% on January 13.

"So to support more than 150,000 businesses and help protect 2.4 million jobs through the winter, I'm announcing today that we are cancelling the planned increase and will keep the lower 5% VAT rate until March 31 next year."