Sunday, 23 June 2013

support for local small businesses involved with tourism

Councillor ASKS GOVERNMENT TO GIVE HOTELS AND B&B'S A VAT CUT
Iain Brodie Browne , Lib Dem Leader, has asked Treasury Ministers to reduce the rate of VAT on charges for hotels and B&Bs. Iain thinks this tax cut could boost trade, create jobs and help our tourism sector compete with other destinations.


Iain has asked the Treasury to bring tax rates into line with other European countries. While VAT rates on hotels and cultural attractions are set at the standard 20% in the UK, they are much lower in other EU destinations:

· Germany 7%
· France 7%
· Ireland 9%
· Spain 10%
· Italy 10%

This puts the UK and the Seaside resorts like Southport at a competitive disadvantage. According to independent research, cutting VAT on tourism to 5% would create 80,000 jobs, many for the young and unemployed, and generate a surplus of £2.6 billion for the Treasury over 10 years.

A report by Professor Adam Blake, using the Government's own Computable General Equilibrium (CGE) model, concludes that cutting VAT on tourism is one of “the most efficient, if not the most efficient, means of generating GDP gains at low cost to the Exchequer that we have seen with the CGE model”.


Iain said ‘my Lib Dem colleague Tim Farron MP - who represents the Lake Districts-, has tabled a written question in the House of Commons. He asked the Chancellor of the Exchequer “if he will consider reducing the rate of VAT charged to hotels in the UK for the purposes of enabling them to run their businesses at similar levels of taxation to hotels in other EU countries?”



Iain said: “small businesses like local hotels and B&Bs are the backbone of our economy and, with the recent changeable weather we’ve had, I think they need more help and support. I would like the government to look at the impact of cutting VAT for the tourism industry because I think it could boost trade and support our local economy.”

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