Press release
8 July 2020
Daniel Lyons, head of tax policy at Deloitte, comments on the Chancellor’s cut to the VAT rate:
“The sector specific VAT rate cut to 5% is aimed at boosting business and protecting jobs in two of the sectors hardest hit by the COVID-19 pandemic. Whilst the cut will be welcomed by many, pubs and bars may be disappointed that it has not been extended to the sale of alcoholic drinks.
“The rate change could mean a range of savings for consumers. For a pub meal costing £45 without alcohol, a couple could expect to save £5.62, while a £54.50 one night stay at a hotel in a family room would see a saving of £6.81. A family ticket to a theme park or zoo costing £144 could see a saving of nearly £18.”
@DeloitteUK for live comment;
@DanielFLyons1 for Daniel Lyons, Head of Tax Policy; and
@IanStewartEcon for Ian Stewart, chief economist
Experts from Deloitte are available now and on the day of the Update for comment. On Wednesday 8 July, please call the Deloitte Media hotline on 020 7007 3333, where you will be directly connected to one of our spokespeople.
Deloitte LLP is the United Kingdom affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent entities. DTTL and Deloitte NSE LLP do not provide services to clients. Please see About Deloitte to learn more about our global network of member firms.