Tourism and Hospitality businesses in Herefordshire received a huge boost yesterday when the Chancellor announced a cut in VAT from 20% to 5% from next Wednesday.

With many people nervous about travelling abroad, it’s thought that many will choose to travel to locations and beauty spots across the United Kingdom, including Herefordshire.

Chancellor Rishi Sunak said:

“We’re reducing VAT to 5% for goods and services supplied by the tourism and hospitality sectors.

“This is a £4bn catalyst benefiting over 150,000 businesses, and consumers everywhere – all helping to protect 2.4 million jobs.”

What does this apply to? Lots of things, including meals in restaurants, cafes and pubs, and hot takeaway food bought from these businesses; accommodation in hotels and B&Bs and at campsites and caravan sites; and venues and attractions such as cinemas, theme parks and zoos. However, while the temporary lower rate applies to non-alcoholic drinks, it does not apply to alcoholic ones.

When is this happening? From 15 July until 12 January 2021.