TAX POLICY ASSOCIATES
The £12bn VAT cut for hospitality. Who really benefits?
It’s a hugely expensive subsidy, likely costing more than £12bn a year. The largest single share of the benefit goes to big business to increase profits.
June 12, 2026
taxpolicy.org.uk/2026/06/12/h...
The hospitality industry wants VAT cut from 20% to 10%. We estimate it would cost £12bn, miss many small businesses, and give £bn to large chains.
