Cut Tourism VAT

Cut tourism VAT, boost british jobs

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Reducing the rate of VAT for tourism services stimulates investment, creates employment and boosts growth
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About the campaign

Cut Tourism VAT is campaigning for the rate of Tourism VAT to be brought into line with competitor destinations throughout the rest of Europe.

The United Kingdom is one of only two countries not to apply a reduced rate of VAT to visitor accommodation, and most countries also do so to visitor attractions and meals out.

This means that British families or international visitors choosing a British holiday would pay almost three times as much VAT compared to a German break, and twice as much as one in Italy, France and Spain.

As such British tourism businesses are continuing to lose further ground to our European rivals in attracting domestic and international holidaymakers. The results of this can be seen in struggling popular tourist destinations, especially in coastal areas. Reducing tourism VAT would help lower prices, but also allow businesses to increase investment in these areas.

In addition this measure would increase revenue to HM Treasury. Independent research carried out by a Treasury adviser using the Government’s own economic model has concluded that lowering the rate of tourism VAT to 5% is “one of the most efficient, if not the most efficient, means of generating GDP gains at low cost to the Exchequer that we have seen with the CGE model”. Additional research by Deloitte/Tourism Respect found that such a reduction would contribute an extra £4.6 billion to HM Treasury over ten years and create 121,000 jobs.

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Latest news

Cut Tourism VAT Chairman tells BBC News why it is important that the VAT reduction on hospitality is extended beyond 31st March

  On the 28th January, BBC News South Today, which spans seven counties across the South of England, aired a new story on the effect of the pandemic on the hospitality industry and the benefit the reduction in VAT has had on securing the future of many businesses. The news story featured the Andy Jones,…..Read more


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