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Campaigning for a fairer tax system

Hospitality delivers an enormous amount to the Treasury each year, delivering £54 billion in tax receipts in 2022 and funding vital public services. However, ours is one of the most taxed sectors of the economy.

Whether it’s VAT or tourist tax, we’re working in your interests with governments in Westminster, Cardiff and Edinburgh to deliver the fairest tax system possible.

Campaigning for a lower rate of VAT

The UK has one of the highest rates of VAT in Europe, which is a significant drag on our competitiveness on the world stage. We saw the impact a lower rate of VAT for hospitality had when it was introduced during the pandemic - stimulating demand and generating revenue.

Lowering the rate of VAT remains one of our core asks to government and we're continuing to push this at every opportunity, particularly in the run-up to the Budget.

How hospitality can help the Chancellor reduce inflation
The Chancellor Jeremy Hunt walks outside Downing Street with the Budget box. Photo by Zara Farrar / HM Treasury

Tourist tax in Wales

We have been leading the opposition to the introduction of a tourist tax in Wales but unfortunately the Welsh Government has decided to press ahead with its introduction. This is despite overwhelming opposition to the tax, with the majority of respondents to the consultation on its introduction against it.

It's now critical that the Welsh Government make a legislative commitment that any funding raised by the imposed tax on overnight accommodation is ringfenced for the genuine benefit of hospitality and tourism businesses in Wales.

‘Deeply disappointing’ tourist tax given go-ahead

Visitor Levy in Scotland

In March 2023, the Scottish Government introduced legislation that would enable local authorities to introduce a Visitor Levy and add a tax to overnight accomodation. While it's not expected to come into force until 2026. there are still many unanswered questions about the scheme.

We're not in favour of the visitor levy but, if it is to be introduced, it's essential that any money raised from the levy is ring-fenced to be spent on hospitality and tourism.

Targeted strategy needed for Visitor Levy funds