Torbay MP Adrian Sanders is calling on the Government to cut VAT for the tourism industry in next month’s pre-Budget Report. The move, which has the backing of several tourist businesses in the Bay, would see the UK match tax cuts for tourism already approved in countries such as France and Germany.
Adrian signed a Parliamentary petition this month urging the Government to reduce VAT on hotel accommodation, restaurant meals and visitor attractions to between 5.5 and 7%. Other countries have already taken these steps and research has shown that in the UK such cuts would create around 23,000 new jobs and bring over half a billion in extra tax revenue from the increased economic activity.
Adrian commented: “Tourism remains the biggest contribution to the local economy and it is essential that the Government takes action to help this industry in the recession. VAT cuts are a win-win situation: there will be more jobs, more business and this new business will overall bring more revenue to the Treasury.”
“This would be an immense boost to many local businesses and I have already been in contact with a significant number who support the campaign.”
Adrian has written to the Chancellor Alistair Darling calling for VAT cuts.
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