CHANCELLOR Rishi Sunak has announced that he is extending the VAT cut on the hospitality and tourism sectors as part of the spring Budget 2021.
The news is great for Brits planning a staycation this summer, as it paves the way for cheaper holidays and meals out.
And the standard rate won’t be returned to until April next year, with an interim rate of 12.5% for another six months after September.
In terms of holidays, the saving could cut £300 off a one-week family staycation.
If you haven’t booked your summer break yet and are tempted by a staycation thanks to the VAT cut, there are a number of cheap deals still around.
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The extension will be a boost to the tourism and hospitality industries, which have been hit hardest by the coronavirus lockdowns.
Some of the businesses where VAT will be cut include restaurants, cafes and pubs, hotels, holiday and caravan parks.
However, it’s worth bearing in mind that businesses don’t have to pass on the tax break to shoppers.
From May 17, groups of up to six people from different households or unlimited numbers of people from two households can share a holiday let together.
From June 21, there will be no restrictions on group sizes for holidays.
It’s worth noting though, that the dates for coming out of lockdown are not set in stone.
Holidays will only happen on the condition that coronavirus cases continue to fall and vaccines still roll out at pace.
If you’re looking for more staycation inspiration, we’ve found the best UK holiday parks with children’s entertainment and the best holiday parks with outdoor pools and campsites with availability for summer.
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