In his summer statement on 8 July the Chancellor announced a reduction in VAT for some supplies related to tourism, hospitality and leisure. Details are available by clicking here.
This will only affect councils that are registered for VAT and charge and account for VAT (‘output tax’) on supplies such as charging for catering or charging for ‘attractions’ such as concerts or museums. Councils not registered for VAT are not affected. The rules on recovery of VAT (‘input tax’) by councils are not affected.