U.K. Has No Plans to Extend Sales Tax Cut for Hospitality

The U.K. government has no plans to extend a cut in sales tax for the hospitality industry, a blow to one of the worst-affected sectors during the coronavirus pandemic.

Chancellor of the Exchequer Rishi Sunak cut value added tax to 5% from 20% for hospitality and leisure in July. The Treasury costed the relief at 4.1 billion pounds ($5.6 billion) for the six months through Jan. 12, but has since extended the reduction through to March 31.

“The relief comes at a significant cost,” Treasury Minister Jesse Norman told the House of Commons on Tuesday. “While the government keeps taxes ...