Knight Calls for ‘VAT Review’ on Tourism
East Yorkshire MP Sir Greg Knight is calling on the Government to consider cutting the rate of VAT to 5% on tourist attractions and accommodation providers to help the domestic tourism industry bounce back from the COVID-19 crisis.
Sir Greg says: “The tourism and hospitality sector have been hardest hit by the shutdown and will be one of the last sectors of the economy to be permitted to reopen. Accordingly, I have asked the Chancellor to consider cutting the applicable VAT rate in his next budget, which would give a boost to tourism in the UK and encourage people to take holidays in places like Bridlington and the East Riding, rather than spending their money abroad.
Sir Greg said: “Some within the tourism industry are currently getting help from the government’s furlough scheme but this will not go on forever”.
“As the lockdown eases the industry will need targeted support to help it bounce back and there could be few better ways of incentivising Brits to take their holidays in the UK than by cutting the VAT applicable, to make them cheaper”.
“Many people are grateful for the range of government measures in place to help businesses through this crisis but I am now calling for some targeted assistance for the tourism sector”.