A PERMANENT reduction in VAT and a lower level of excise duty for alcohol sold in licensed premises are among the measures trade group UK Hospitality would like to see included in the UK Government’s Autumn Budget.
In a submission to the Treasury, the group outlined a number of measures it considers key to the recovery of the hospitality industry.
They include a permanent VAT rate of 12.5% for hospitality and tourism businesses, a lower level of excise duty for all alcohol sold in licensed premises, an increase in the primary threshold for employer National Insurance Contributions to £12,000, as well as continued investment in skills and apprenticeships and an extension to the government’s Kickstart scheme.
The VAT rate for hospitality and tourism was cut to 5% in 2020 and rose to 12.5% on 1st October. It is currently due to return to 20% in April 2022.
UK Hospitality chief executive, Kate Nicholls, said: “The hospitality sector has proved before that it can lead the way out of an economic crisis and since our businesses were permitted to reopen in April 2021, we have seen strong employment growth.
“Given the right conditions we can continue to create jobs, rejuvenate high streets, generate billions in tax and contribute to growth.”
Chancellor Rishi Sunak is due to deliver the Autumn Budget on 27th October.