Chancellor Rishi Sunak has announced a significant boost for the hospitality industry and tourism, as well as for his customers, by extending the VAT cut.
Winter Economic Plan Announcement Mr. Sunak revealed new measures to support the economy amid the ongoing coronavirus pandemic.
In the last major update from Mr. Sunak, the hospitality and tourism sales tax was cut from 20 percent to 5 percent.
Most companies – like McDonald’s and Costa Coffee – passed this discount on to their customers.
The program was supposed to end on January 13th.
But Mr Sunak announced a change at the end of a new package of measures presented in the House of Commons today.
He said: “The final step I am taking today will support two of the worst hit sectors, hospitality and tourism.
“Under current plans, the VAT rate will increase from 5% to the standard rate of 20% on January 13th.
“To support more than 150,000 businesses and protect 2.4 million jobs over the winter, I announce today that we will be canceling the planned increase and maintaining the lower 5% VAT rate through March 31 of next year.”