Further to my articles here and here the government have announced further measures for hospitality, holiday accommodation and tourist attractions.

These measures introduce

• an extension to the temporary reduced rate of VAT (5%) for a further 6 month period until 30 September 2021. A new reduced rate of will then be introduced until 31 March 2022.
• a new reduced rate of 12.5% will then be introduced which will end on 31 March 2022.

Aims

These changes are aimed at supporting the reopening of the economy following the outbreak of the coronavirus pandemic and help to re-establish habits such as eating out in restaurants.

The measures will help to protect an estimated 2.4 million jobs in these industries.