This website uses cookies to store information on your computer. Some of these cookies are used for visitor analysis, others are essential to making our site function properly and improve the user experience. By using this site, you consent to the placement of these cookies. Click Accept to consent and dismiss this message or Deny to leave this website. Read our Privacy Statement for more.
News & Press: General

Cross-party support voiced for long-term reduction in tourism VAT

10 September 2020   (0 Comments)
Posted by: Pernille Thomsen
Share |

UKHospitality has welcomed the cross-party support for a long-term reduction in tourism VAT expressed in this afternoon’s Backbench Business debate in the House of Commons.

Hospitality and tourism businesses have welcomed the Government’s decision earlier this summer to reduce VAT to 5% until January 2021. This is widely viewed as a boon for the hospitality sector post-Covid-19 lockdown, facilitating price cuts and helping to heal devastated business incomes.

Prior to the cut, the UK’s rate of VAT for accommodation and tourism attractions was approximately twice the average of other major European destinations such as Spain, Germany and Italy, imposing higher costs and stifling demand.

MPs from the Conservative Party, Labour, the SNP and Liberal Democrats each suggested that an extension of the reduction in VAT beyond January would be an effective way to protect businesses over the winter and stimulate the UK’s tourist economy.

UKHospitality Chief Executive, Kate Nicholls, said: “The expression of so much cross-party backbench support for extending the VAT cut is a very positive signal that the value of hospitality and tourism is rightly being recognised. As we move away from the peak tourism season, it is encouraging to see all parties looking at ways in which Government can support these vital sectors through the winter. A permanent cut in VAT would level the playing field with the UK’s international competitors, enabling tourism and hospitality businesses to survive over the winter, before helping to drive the UK’s economic recovery in 2021.”

ENDS

Notes to editors

About UKHospitality

  • UKHospitality is the trade body representing the UK’s hospitality sector, established following a merger approved in February 2018 between the Association of Licensed Multiple Retailers (ALMR) and the British Hospitality Association (BHA)
  • UKHospitality is the authoritative voice for over 700 companies, operating around 65,000 venues in a sector that employs 3.2 million people
  • The body speaks on behalf of a wide range of leisure and ‘out-of-home’ businesses, from FTSE 100 enterprises to niche groups and independent single-site operators
  • For the first time, the sector has a single voice bringing together businesses from all aspects of hospitality; coffee shops, hotels, serviced apartments, pubs, restaurants, leisure parks, nightclubs, contract caterers, entertainment, stadia and visitor attractions
  • Engaging with government, the media and the public, UKHospitality works to develop a robust case on how to unlock the industry’s full potential as the biggest engine for growth in the economy and ensure that the industry’s needs are effectively represented
  • The sector creates £130bn in economic activity and generates £39bn of tax for the Exchequer, funding vital services
  • Hospitality represents 10% of UK employment, 6% of businesses and 5% of GDP
  • Hospitality is the 3rd largest private sector employer in the UK; double the size of financial services and bigger than automotive, pharmaceuticals and aerospace combined.

Business Partners