MORE than 160 top hospitality firms, including Pizza Hut, Burger King and Caffe Nero, have urged the Chancellor to extend the VAT reduction for a year.
Bosses said it would help the UK to bounce back faster by supporting jobs and keeping prices low.
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The VAT reduction, from 20 to five per cent, was brought in last year by Rishi Sunak as support for the hospitality, leisure and tourism sectors.
It is due to end on March 31, meaning prices could soar on meals, tickets and outings as the UK emerges from lockdown.
In a joint letter, coordinated by trade body UKHospitality, the 166 firms, including hotel chains, also press the Chancellor to extend the business rates holiday in his Budget on March 3.
It states: “Given the right fiscal support in March and safe and sustainable trading conditions in place, we can help this country ‘bounce back’ from the pandemic in a safe and responsible way.”
The letter adds that extending the VAT cut for a year “will be critical to boosting employment, particularly in 16-24 year olds”.
Kate Nicholls, CEO of UKHospitality, said: “There is no point in the Government undoing all the good work it has done in 2020 by pulling the rug from under us as we get back on our feet.”
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