Mike Weatherley, Conservative MP for Hove & Portslade, has backed an Early Day Motion (EDM) that calls on the Government to cut VAT for the tourism sector.
EDM 40 (Tourism VAT Reductions) urges the Government to work towards a sector-specific VAT reduction for certain tourism-related products and urges the government to consider action to introduce a sector-specific VAT reduction for certain tourism-related products, following the recent recognition and acknowledgement by government of the extensive and important value of the tourism sector in the UK.
The parliamentary motion was initiated following the acknowledgement that tourism-related businesses lie at the heart of the local community and economy, and therefore call for a reduction in VAT to be applied exclusively to the tourist sector and on specific tourism products.
The EDM further recognises that many local regions have a high reliance on the tourism sector and that this is a sector of great importance for the economy, as shown by the Treasury’s own modelling technique, which showed that a cut in tourism VAT could increase gross domestic product by up to £4 billion per year.
Mike said: “This policy is a great step towards boosting tourism in the UK, and the latest legislative proposals to introduce a sector-specific reduction in VAT are certainly a key policy in boosting the tourism industry and the economy. I am most supportive of policies that will aid local tourism in Brighton & Hove, and welcome this proposal for the Government to consider the benefits to the economy.”
EDM 40 – VAT on Tourism
“That this House recognises the value of the tourism sector; notes that tourism-related businesses lie at the heart of the local community and economy; further notes that 24 out of 27 EU states, including the Republic of Ireland, take advantage of a reduced rate of VAT for some part of their tourism sector, and that this has made a positive impact by increasing investment and jobs; acknowledges that, as a result, local regions that have a high reliance on the tourism sector are at a competitive disadvantage compared to other EU states; highlights the economic study produced by Professor Adam Blake, using the Treasury’s own modelling technique, which showed that a cut in tourism VAT could increase gross domestic product by up to £4 billion per year; calls on the Chancellor of the Exchequer to introduce a sector-specific VAT reduction for certain tourism-related products, including accommodation and attractions; and further recognises that such a move would strengthen the wider economy, support job creation and generate investment in local businesses.”