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VAT cut would help spark recovery

VAT cut would help spark recovery

A report from the Institute for Fiscal Studies (IFS) backs calls for the Chancellor to introduce a temporary cut in VAT when he unveils a mini-Budget next month. The think-tank says cutting VAT would have a double benefit for the economy by “putting money in people's pockets” immediately and encouraging consumers to bring forward spending. However, Rishi Sunak should also consider that the move might be more effective later in the year. Separately, the FT’s Chris Giles calls on Chancellor Rishi Sunak to introduce a temporary lower rate of VAT on pubs, restaurants, hotels and tourist attractions, dropping it from 20% to 5%.

Read more: Financial Times


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