VAT reduction for hospitality sector 'not likely' says Treasury Minister

Bar and restaurant owners have been urged not to expect a reduction in VAT anytime soon.

It was hoped among the industry that the Autumn Statement may contain news of a VAT cut, from the existing rate of 20% to 12.5%, not such reduction was announced however.

On the Isle of Man we follow the lead of the UK on all matters to do with value added tax, with the option to 'go it alone' coming at the dissolution of the entire agreement, which would prove very costly for the Island.

Treasury Minister Dr Alex Allinson said they are focussed on helping the industry in other ways, but a VAT cut will not be feasible: