August 01, 2011
“The BHA has reacted swiftly to reports that the Treasury has vetoed cuts in VAT for the hospitality industry which were reported in the Publican’s Morning Advertiser.
“In a letter to the paper, Ufi Ibrhaim said:
“SIR – I was interested to read in the Publican’s Morning Advertiser that the “Treasury has refused to consider a VAT cut to 5 per cent for the hospitality industry”. From the letter sent by the Minister in charge of VAT which you reported, this may be true about the level of VAT on alcohol, provided either with or without a meal, but it is certainly not true of the industry’s campaign for a reduced rate of VAT on hotel accommodation and attractions.
I can assure you that the BHA is in discussions on this with HM Treasury and these are continuing on the basis of an independent study on the impact of a reduced rate of VAT on the hospitality industry by Deloitte which was commissioned by Bourne Leisure and Merlin Entertainments.
After initial discussions with the Treasury the BHA has replied to a number of points that officials and ministers have raised. These discussions are ongoing and we have every reason to believe that the Treasury is listening carefully to our arguments.
I would not wish your readers to conclude that the Treasury’s decision on alcohol will have any bearing on its approach to hotel accommodation and attractions.”
British Hospitality Association