Parliament set to debate tourism VAT cut

05 February 2014 by
Parliament set to debate tourism VAT cut

Parliament is set to debate VAT on tourism as the campaign for a reduction for the sector gathers pace.

Following a round table debate held last month at the Cavendish London hotel, where MPs met the Cut Tourism VAT Campaign to establish how best to advance the case, two of the most confident of a cut have made the subject the sole focus of a debate.

Margaret Ritchie MP and Caroline Lucas MP have secured a Westminster Hall adjournment debate in Parliament on Tuesday 11 February.

Lucas last month called a reduction in VAT for hospitality a "no brainer" and said that operators should do more to ensure their local MPs are aware of the benefits of a cut.

The British Hospitality Association (BHA) is now calling on all supporters to write to their Member of Parliament to encourage them to take part in the debate.

It has even drafted a letter that operators can use as a template for their correspondence. The letter points out the potential that a VAT cut to 5% on accommodation and attractions would deliver an extra £2.6b to HM Treasury over ten years and create 80,000 jobs.

BHA chief executive Ufi Ibrahim said: "The power of a grassroots campaign should not be underestimated.

"The role of even the smallest company, who has engaged with their MP and educated them on the Cut Tourism VAT campaign is best illustrated by the forthcoming House of Commons debate.

"Every letter, every conversation, every mention of the importance of hospitality and tourism, and the potential to drive additional wealth and jobs through a competitive VAT rate gets us one step closer to the prize."

Graham Wason, chairman of Cut Tourism VAT added: "This is the first ever debate focused exclusively on Tourism VAT in Parliament and is an important opportunity that industry must take advantage of."

"The campaign is working with all of our supporters to encourage MPs to take part next Tuesday and to raise aware of the strong economic evidence behind the case for a reduction."

VAT reduction a ‘no-brainer' says MP >>

Industry leaders call on Chancellor to consider VAT cut >>

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