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VAT should be permanently lowered for 'fragile' hospitality and tourism businesses, ministers were told today as a temporary Covid cut came to an end.
An emergency rate cut from 20 per cent to 5 per cent for hospitality was brought in by Rishi Sunak in July last year in an attempt to help first hammered by the first Covid lockdown.
But it ends today, with the rate going up to 12.5 per cent for six months until returning to its original level in April, unless subsequent changes are made.
However, with furlough also ending today, firms warned that businesses in the industry remain brittle and jobs could be at risk.
The public remain cautious and workplaces are not yet at 100 per cent occupancy - with many people choosing to work from home permanently.
Kate Nicholls, chief executive of UKHospitality, said: 'With businesses currently experiencing a record number of vacancies, our hope is that those seeking employment will consider the varied and exciting opportunities a career in hospitality offers.
'With the right support and conditions, the sector has the potential to be at the forefront of the economic recovery.
'In order to drive further job creation, we urge Government to implement a long-overdue reform of business rates and a permanently lower rate of VAT for hospitality and tourism in order to help fragile businesses back on their feet.'
