VAT on tourism discussed in Westminster Hall debate
During a Westminster Hall debate on Tuesday 17 April, which considered the impact of Brexit on Tourism and the Creative Industries, reducing VAT on tourism was mentioned as a method to protect the success of the UK’s growing tourism industry in the face of concerns about Brexit.
David Duguid MP mentioned that while there were concerns for the industry around Brexit, the opportunity for readjusting the UK’s tax system following leaving the EU was cause for positivity. Nigel Dodds MP agreed with his assessment that a possible change in VAT was a benefit of leaving the EU for the industry.
Christine Jardine MP and Kevin Brennan MP rightly corrected Duguid that leaving the EU is not necessary for the reduction of VAT on a specific sector, only for regional variations. Jardine added that the majority of EU member states had reduced VAT on tourism already, citing France who have reduced it to 9% on the entire sector.
The session also raised concerns about whether the tourism industry will be able to find the workers to fill vacancies if they are no longer able to rely on European workers. MPs also raised concerns over the possibility of difficulties of attracting skilled workers and performers if immigration rules are significantly tightened.
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