Government urged to consider emergency VAT reduction

The government has again been urged to consider an emergency VAT reduction in order to help businesses once the coronavirus (COVID-19) lockdown ends.

A new report published by think tank Policy Exchange has suggested that reducing the rate of VAT to 15% could help boost consumer spending in the short-term. The current standard rate of VAT is 20%.

The publication of Policy Exchange's report comes following rumours that Chancellor Rishi Sunak is reportedly considering reducing the standard rate of VAT to help tackle the economic fallout caused by the COVID-19 lockdown.

According to reports, the Chancellor is preparing to deliver a 'Summer Statement' in early July, in which he is likely to outline new initiatives on skills and apprenticeships, alongside measures to help boost the UK economy.

Experts have also recommended cutting employer national insurance contributions (NICs) and extending the business rates relief scheme in England and Wales.

About us

We were established over 80 years ago

We continue to build on our enviable reputation for providing excellent advice and first class service to our business and personal clients alike...

Bere Mill Cows image by Henry Lawford, licensed under CC 2.0 license.

© 2021 Montpelier Professional (Galloway) Limited . All rights reserved. We use cookies on this website, you can find more information about cookies here. powered by totalSOLUTION

Newton Stewart Office : Montpelier Professional (Galloway) Limited , 1 Dashwood Square, Newton Stewart, Dumfries & Galloway DG8 6EQ
Stranraer Office : Montpelier Professional (Galloway) Limited , Challoch Inn, Leswalt, Dumfries & Galloway DG9 0LJ

VAT No 151 179 030. Registered in England and Wales No. 06025692. Registered Office: Sanderson House, Station Road, Horsforth, Leeds LS18 5NT. Montpelier Chartered Accountants is a trading name of Montpelier Professional (Galloway) Limited.

Professional Indemnity Insurers: Arch Insurance, 5th Floor, Plantation Place South, 60 Great Tower Street, London, EC3R 5AZ