The hospitality industry is one of the key sectors in Totnes and South Devon and I have done all I can throughout the Covid-19 pandemic to ensure this industry gets the best possible deal.
In May 2020, I wrote to the Chancellor asking for a reduction in VAT from 20 to 5%, having gained support from 84 colleagues. I was delighted when the Chancellor announced this measure was to be in place from the 15th July 2020 to the 12th January 2021.
Speaking to businesses throughout the summer on the impact this reduction was having on their finances further cemented how important this reduction was, so in September I once again wrote to the Chancellor, this time asking for an extension to this scheme. I was delighted when he announced that the 5% VAT rate was to be extended until the 31st March 2021, allowing the sector to get through the difficult winter months.
The VAT reduction was extended once again in the Spring Budget, with the Chancellor announcing that the VAT rate for the Tourism and Hospitality Sector would remain at 5% until 30 September 2021, before being replaced by an interim rate of 12.5% until 31 March 2022. The Business Rates Holiday for Retail, Hospitality and Leisure Businesses has been extended until 30 June 2021, when business rates will then be reduced by two thirds until 31 March 2022.
To date I have: