A petition to extend the VAT cut for the hospitality industry until March 2022 has received over 10k signatures, meaning the government is required to review it.
The petition – set up just last week by Andy Lennox, owner of Zim Braii restaurants – described the measure as “an essential lifeline” for the hospitality industry’s recovery and “the single biggest Covid-19 relief measure”.
Lennox stated that “the VAT at 5% was the single biggest recovery mechanism from the last two lockdowns and helped us re-build our businesses. He also added:
– The VAT at 5% will help keep rising inflation and costs down.
– The VAT at 5% will encourage re-investment and investment into the industry.
– The VAT at 5% will help out Industry return to profitability – helping pay more Corp Tax.
– The VAT at 5% will help save hundreds of thousands of jobs in the Industry where without this without this essential recovery mechanism many will now not re-open.
Originally, the chancellor cut VAT on food, accommodation and attractions for six months from 20% to 5%, which was then extended to the end of March 2021. Despite calls from industry leaders to extend the VAT cut, no further plans have been revealed.
The petition will now be considered for debate in Parliament.