SINCE the start of the coronavirus pandemic a little over a year ago, I have been making regular representations, along with my Devon MP colleagues, to the Chancellor and Her Majesty’s Treasury to provide additional support for the hospitality, leisure and tourism sectors.

These businesses have been some of the hardest hit, having been some the first to close in 2020 and subject to restrictions for much of the last year.

It is very encouraging that these representations have been listened to with the Chancellor announcing an extension to the 5% reduced rate of VAT for a further six months until the end of September. The rate will then increase to 12.5% from October until the end of March, before returning to the normal 20% rate from April 1. Overall, that’s a tax cut of nearly £5 billion next year.

In addition to this, the Government will continue the 100% business rates holiday for the first three months until June, before cutting rates by two-thirds for the remaining nine months, up to a maximum £2 million per business. That means the vast majority of businesses will receive a 75% cut in their bill next year – a tax cut worth £6 billion.

These two announcements alone will go a long way to protecting 150,000 hospitality and tourism businesses which employ around 2.4 million jobs throughout the UK.

The Chancellor has also recognised that many of these businesses need help to restart when restrictions start to be lifted along the Prime Minister’s roadmap. I therefore welcome that non-essential retail businesses will receive grants of up to £6,000, while hospitality and leisure businesses – including personal care, hairdressers and gyms – will receive grants of up to £18,000. Additionally, local councils will receive an additional £425 million in discretionary funding to support other local businesses.

These spending commitments provide our businesses with the support and reassurance they need to get through the pandemic and start to rebuild as we return to normal once more.