Boost for hospitality sector

VAT is to be slashed on food, accommodation and attractions in a major boost for hospitality firms hit hard by the coronavirus pandemic.

Chancellor Rishi Sunak announced that tourism and hospitality VAT will be cut from 20 per cent to 5 per cent for the next six months in his “mini-budget” announcement.

The move will cut the tax on eat-in and hot takeaway food from restaurants, cafes and pubs, which have started to reopen over the past week.

Mr Sunak also said the move will benefit accommodation in hotels, B&Bs, campsites and caravan sites, while attractions such as cinemas, theme parks and zoos will also see the tax cut.

It will be reduced from Wednesday July 15 until January 12, he told MPs.

The temporary VAT cut does not include alcoholic drinks, the Treasury’s “plan for jobs” document said.

Mr Sunak added: “This is a £4 billion catalyst for the hospitality and