Cut Tourism VAT

Cut tourism VAT, boost british jobs


Thursday, 29 January 2015

Cut Tourism VAT gets Sir Nick Harvey MP’s backing!

Nick Harvey has today launched a petition in support of the campaign to reduce tourism VAT.

The MP’s petition calls on the Government to reduce VAT on hotels and tourist attractions from its current rate of 20 per cent to 5 per cent. The cut would bring the UK more in line with other European destinations: 25 out of 27 EU member states have reduced VAT for tourism, leaving the UK with the second highest rates of the bloc – twice as high as France, Germany, Italy and Spain.Nick Harvey
It is hoped the measure will stimulate tourist numbers across the country. Additionally, research by Deloitte has shown it would create 120,000 jobs in three years and boost Treasury takings by £2.6 billion over the next decade.

Over 100 MPs are backing the campaign, including 14 from the South West. Many leading businesses and tourist groups have also added their support.

Nick Harvey commented:

“Some £2.4 billion is spent by tourists in Devon every year, and the industry employs 14 per cent of the population. But tourism has come under huge strain recently with stretched budgets, and the off-putting effects of adverse weather and flooding in the South West. At the moment, high rates of VAT are inhibiting the growth of North Devon’s tourist industry, but with a little help from the Government, the picture could be much brighter.

“Measures like the abolition of Air Passenger Duty for children have made it cheaper for people to go abroad. We need similar tax cuts to address the sky high rates of VAT that people pay to holiday within the UK.

“I am pleased to join a significant number of cross-party MPs backing this campaign. If we can get businesses and the public to show their support too, pressure on the Treasury will build to reassess the policy. That’s why I am urging North Devon residents and businesses to sign my online petition, which I will then present to Ministers.

“Britain is one of the most historically and culturally rich places in the world – yet potential visitors are often put off by high prices.”

Lynn Reynolds, director of Exmoor Zoo, said that the measure would give businesses a ‘tremendous boost.’

“Just to be on a level playing field with the rest of Europe would give businesses, especially those in rural areas that rely on summer seasonal holidays such as the South-west, a tremendous boost and help make UK businesses more competitive on the European market.

“With a senior MP like Sir Nick Harvey supporting this can only be a positive addition to the motion and highlights the economic benefits that the VAT tourism cut can bring to tourism businesses in the UK.”

The Chairman of Cut Tourism VAT also welcomed Nick’s support, saying:

“I am pleased to welcome Sir Nick’s petition to help local businesses and make British family holidays more affordable. Devon provides an incredible tourism offer, but with Tourism VAT double the European average we’re competing on an unfair playing field.”

You can sign the petition here:

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