PARLIAMENTARY WRITTEN QUESTION
Public Houses: VAT (11 September 2024)

The Government recognises the significant economic contribution made by pubs as well as their importance in fostering a sense of place and community across the UK.

VAT is the UK’s second largest tax, forecast to raise £176 billion in 2024/25. Taxation is a vital source of revenue which helps to fund public services.

The Government has inherited a challenging fiscal position, with debt near 100% of GDP and borrowing more than double what it was before the pandemic. In addition to this, a Treasury audit in July 2024 revealed an additional £21.9 billion pressure on departmental spending.

As a result, the Government will have to take difficult decisions in relation to tax, spending and welfare at the budget.