Budget rejects VAT cut for hospitality but offers rates relief

Summarised from 2 outlets · Updated 28 Oct, 15:42 · Archive

Chancellor John Healey's Budget rejected calls to cut VAT on hospitality from 20% to 10%, instead raising the business rates relief threshold to help 70,000 firms.

Chancellor John Healey's Budget rejected calls from hospitality businesses to cut VAT from 20% to 10%, a campaign supported by Cumbrian firms under the hashtag #VATSTHEPROBLEM.

Instead, the Budget raised the threshold for full Small Business Rates Relief from £12,000 to £18,000. The Government says 70,000 retail, hospitality and leisure businesses will be removed from business rates payments nationally, meaning small pubs, cafes, takeaways and independent restaurants could see their rates bill fall to zero. To fund this, the Chancellor plans to raise taxes on gambling and remove adult gaming shops and vape shops from business rates reliefs.

The Budget also included £10 million in alcohol duty relief intended to support about 2,000 small brewers and cider makers, potentially lowering supply costs for pubs. Mr Healey said: 'I want these businesses to invest, to recruit, to expand.' However, some businesses remain disappointed. Toast, a café in Windermere, previously stated: 'The biggest strain we face against our business is VAT.'

Budget rejects VAT cut for hospitality but offers rates relief — Image: Westmorland Gazette

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How it is being reported

No hospitality VAT cut as Budget offers rates relief to 70,000 firmsChancellor John Heely's budget doesn't adhere to calls to decrease VAT on hospitality but what has he offered hospitality businesses.Westmorland Gazette · 28 Oct, 15:00
No hospitality VAT cut as Budget offers rates relief to 70,000 firmsChancellor John Heely's budget doesn't adhere to calls to decrease VAT on hospitality but what has he offered hospitality businesses.NW Evening Mail · 28 Oct, 15:00

In this story: John Healey · Toast · Windermere · Cumbria

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