Tourism industry calls for Autumn Statement tax break
by Jak Phillips | 25 Nov 2014
Chancellor George Osborne is due to make his Autumn Statement on 3 December
UK tourism leaders have cranked up the pressure on chancellor George Osborne to reduce industry VAT in his forthcoming Autumn Statement, producing figures that suggest the move would bring major benefits to regional economies.
The Cut Tourism VAT campaign is calling for a VAT reduction from 20 per cent to five per cent for tourism businesses, to place the UK on a level playing field against European competitors. Tourists in the UK currently pay the highest tax rate in Europe and Britain is one of only four EU nations that doesn't offer reduced rates for the tourism sector.
According to the campaign's latest figures, the VAT cut would create more than 100,000 jobs in regions outside of London, and boost regional economies by £3bn. The regional breakdown comes after The Nevin report recently found a VAT cut would provide a £4bn
boost to the overall UK economy, creating 120,000 jobs.
Osborne’s Autumn Statement to outline government economic plans will be made on 3 December, with tourism industry leaders hoping the sector will receive recognition for its continued strong performance. Tourism is now expected to be a key battleground during the forthcoming 2015 general election, with all major parties pledging to support the sector and a number of marginal seats expected to be closely-contested in seaside towns reliant on the industry.
The Cut Tourism VAT campaign has been building momentum over the past year, while the newly-appointed British Hospitality Association (BHA) chair Nick Varney has outlined securing a lower tourism tax as one of his key objectives.
Graham Wason, chair of the Cut Tourism VAT campaign, said: “George Osborne has a fantastic opportunity in the Autumn Statement to unveil a tax cut that would create thousands of jobs, inject millions of pounds into regional economies outside of London, and even result in a fiscal surplus for the Treasury.
“What’s more, many of the benefits would be felt as soon as a cut is announced. The chancellor should listen to MPs, including the dozens in his own party, who are calling for change.”
UK tourism leaders have cranked up the pressure on chancellor George Osborne to reduce industry VAT in his forthcoming Autumn Statement, producing figures that suggest the move would bring major benefits to regional economies. The Cut Tourism VAT campaign is calling for a VAT reduction from 20 per cent to five per cent for tourism businesses, to place the UK on a level playing field against European competitors. Tourists in
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