Cut Tourism VAT
April 24, 2014
In the March 2014 Budget the Chancellor said that when you cut a tax rate which is “punitive” the Exchequer can benefit from increased revenues. In the case of the UK’s high rate of Tourism VAT he could not have been more correct.
Tourism is now a vital industry for UK plc it is our sixth largest export earner, employing 2.7 million people, with tourism responsible for £134 billion of expenditure in 2012. Despite these excellent numbers, the UK tourism in an increasingly competitive market.
The rate of UK tourism VAT is now a real hindrance to the long-term growth prospects of the sector. Currently 24 out of the 27 other EU states reduce tourism VAT. They have seen the benefits and taken advantage.
Evidence using the Treasury’s own model also reaffirms the benefits of a reduction, with a Treasury adviser concluding it was “one of the most efficient, if not the most efficient” ways of boosting the economy. On the 11th February a debate in Parliament saw support from for the measure. This year – with an eye on the Autumn Statement – supporters across the country will be making the case in this critical pre-General Election year.
For further information you can access reports and briefings on the Campaign , or to get actively involved in what will be a busy year for the Campaign, register your support with [email protected] or on Twitter.
Graham Wason, Chairman, Cut Tourism VAT