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Done
Tax
Maintain the rate of Value Added Tax

And we will not increase the level of Value Added Tax.

Our Verdict

The government pledged not to increase the level of Value Added Tax (VAT). The standard VAT rate is currently 20% for most goods and services. However, some goods and services such as children’s car seats and installing energy saving products, the VAT rate is 5%. The last increase was made in 2011 from 17.5% to 20%. Theresa May has ruled out increasing VAT for at least the next 5 years (2022).

We’re marking this as ‘done’, in line with how we treat other manifesto promises that require the government to simply continue with something that is already in place. We’ll keep monitoring for changes in the different VAT rates. If, for example, there is a rate does rise before the end of parliament we would then mark this promise as ‘broken’. Follow this policy for updates.

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