The SNP has urged the Chancellor to use tomorrow's Budget to
extend the cut in VAT for the hard-hit hospitality and tourism
sector till the end of the year as a minimum.
The party's Shadow BEIS spokesperson welcomed the Treasury's cut
in VAT last year following sustained SNP pressure, but has warned
the UK government against prematurely ending the support - which
has been a lifeline for many in the industry.
The Treasury's temporary cut in VAT rate from 20% to 5% is due to
come to an end this month (31st March).
The party has now called on to announce a full extension of the VAT cut to 5% till
the end of the year as a minimum.
Commenting, the SNP's Shadow BEIS spokesperson said:
“The hospitality and tourism sector has been one of the hardest
hit during this pandemic so any plans to prematurely scrap
support measures risks sending many over the brink.
"Rather than withdrawing support at this critical time, the UK
government should be strengthening measures to protect businesses
and jobs.
"The Chancellor must use the Budget to announce a full extension
of the VAT cut from 20% to 5% till the end of the year as a
minimum - rather than sticking with the March cliff-edge.
"Given a number of those businesses operate on a seasonal basis,
extending that relief to the end of the year is critical to allow
them to get back on their feet.
"It is vital that brings forward a meaningful package of measures to
support our economy, businesses and people's jobs - rather than
scrapping support and signalling a return to Tory austerity."
