LONDON (Reuters) - British finance minister Rishi Sunak said he would extend a cut to value-added tax for hotels, cafes and restaurants until March 31 to support the sectors which are struggling with the effects of COVID-19 on demand.
“So to support more than 150,000 businesses and help protect 2.4 million jobs through the winter, I’m announcing today we are cancelling the planned increase and will keep the lower 5% VAT rate until March 31 next year,” he told parliament.
The reduction in VAT to 5% from 20% began in July and had been due to expire on Jan. 12.
($1 = 0.7851 pounds)
Reporting by David Milliken; editing by Kate Holton
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