The Chancellor did not announce any changes to the VAT rate, the VAT registration threshold or any sector specific support for pubs, bars or restaurants.
The decision comes after industry groups warned that hospitality continues to face significant tax and red tape pressures, and after opposition parties urged the Government to consider targeted support, including a proposed 5% VAT cut for hospitality.
Receipts rise
Government documents show VAT receipts are expected to rise over the next five years.
VAT is forecast to reach around £180bn in 2025 and 2026 and rise to more than £220bn by 2030 and 2031.
The increase is driven by higher consumer prices and more household spending falling on goods charged at the full VAT rate.
Trade bodies had hoped for either a reduced VAT rate for hospitality or targeted relief, with organisations setting out what they wanted from the Budget in the run up to today’s statement.
With no VAT measures announced, operators will continue working within the existing VAT regime.
