- 16th June 2020
- Posted by: Suzy Hill
- Category: Business News, COVID-19 NEWS
MPs call for VAT reduction to help firms affected by coronavirus
MPs have urged the government to reduce VAT for firms in the tourism sector in order to help them recover from the coronavirus (COVID-19) lockdown.
A report published by the All-Party Parliament Group (APPG) for Hospitality and Tourism has called for a reduction in VAT for businesses in the hospitality sector, alongside an overhaul of the business rates system in England and Wales and the creation of a new autumn Bank Holiday.
Just 11% of businesses in the UK hospitality sector have been able to trade through the COVID-19 pandemic, according to the APPG. Figures published recently by the Treasury also revealed that accommodation and food services companies have furloughed 1.4 million people, and have claimed £2.6 billion in furlough funds.
Commenting on the matter, Steve Double, Chair of the APPG, said: ‘The UK’s hospitality and tourism sectors have been devastated by the COVID-19 crisis, and this report highlights the scale of the damage done to businesses.
‘Whilst the support provided to the sector so far has been very welcomed, we are under no illusions that the path to recovery will be tough.’