New figures show 458 entertainment and hospitality businesses are registered for VAT, with 79 more than three months behind on their returns.
As of June 30, 2026, the total outstanding VAT debt across the sector stands at £2.84 million.
The largest share comes from food and beverage service businesses. Of the 282 VAT‑registered operators, including pubs, restaurants, cafés, takeaways and catering firms, 72 have debts more than three months old, totalling £2.39 million.
In the accommodation sector, which covers hotels and short‑stay providers, 7 of the 110 VAT‑registered businesses are in arrears, owing £446,844.
No VAT debt was recorded among the 66 businesses in the amusement and recreation category.
The Treasury confirmed there are no current plans to introduce business‑rate relief for the sector.
