Press releases

08 February 2021

BSDA backs call for hospitality support

The British Soft Drinks Association (BSDA) is backing industry calls to secure an extension for VAT reduction ahead of the Chancellor's Budget on 3 March.

As it stands, the VAT reduction from 20% to 5% introduced last year for hospitality, catering and vending due to the impact of the ongoing COVID-19 pandemic is scheduled to end on 31 March 2021. 

While accounting for this reduction was not straightforward for many businesses, including those in the soft drinks sector, Chancellor Rishi Sunak's intervention provided a welcome boost during challenging and unprecedented circumstances.

UKHospitality is urging businesses and interested parties to lobby their local MP in an attempt to draw attention to the issue. The trade body has a ready-written letter on its website which can be used for this purpose.

The letter, which can be found via this link, calls for:

  • an extension of the VAT cut to 5% for a further 12 months, and to ensure that it applies across the broad hospitality sector to stimulate economic activity;
  • the enaction of a further business rates holiday for hospitality for 2021/22 to protect communities and repair businesses.

The more letters sent, the more chance there is of seeing the VAT reduction extended.