Chancellor Tackled over Lack of Consultation for Tourist Tax Changes

Torbay MP Adrian Sanders is taking the Chancellor to task over the announcement that changes to tax rules for the self catering industry are going ahead.  The  new rules, which come into force in April this year, will abolish tax reliefs for self-catering businesses, and while the existing rules were never intended to be permanent, the Government did not consult with the industry before making the changes.

The new tax rules were announced in April 2009 but the Treasury only published its impact assessment in December’s Pre-Budget Report.  The Department for Culture, Media and Sport, which has responsibility for tourism, was also not consulted on the change.

Ministers have claimed that the changes are needed to comply with EU law, but the Tourism Alliance, who Adrian is supporting, have identified other changes that could be made which would allow businesses to remain profitable as well as complying with EU law.  Unfortunately no debate on these proposals was allowed.

It is estimated that if the Government refuses to soften the blow the industry could lose over £40million per year and cost over 100,000 visits to Devon alone.

Adrian said: “There is great concern across the South West that these new tax rules will have an impact on the self catering industry.  Again the problem stems from the Government ignoring the views of the industry, from which it could have gained more insightful solutions.

“As the Tourism Alliance points out, some options not current being considered would save both jobs and businesses and tax revenue.  Moreover this reinforces the view that the Governments just doesn’t listen to ordinary businesses who are trying to make ends meet in very difficult economic circumstances. ”

The new tax rules are open to consultation until the end of February.

Comments

[Adrian]

Dear Chris,

Thank you for your post.

Please be assured that I will continue to press ministers to provide greater support to businesses in my constituency in this tough economic climate.

If you would like to discuss specific issues in detail, please do not hesitate to contact my office on 01803 200036.

Yours sincerely,

Adrian Sanders MP

[Chris L]

The new tax rules for the self catering industry which are now going ahead is very concerning, as it comes just as the new business rate valuations comes into effect. As with most businesses we are struggling in the current economic climate, and am deeply worried if we will be able to continue, as we have a 65% increase in our business rates and will now lose the ability to claim any capitol allowances on property improvements, and for items that need replacing because of the (high people turn over) in our self catering apartments.