UKHospitality has today (Friday) stated its support for Christine Jardine MP’s call for a reduction on tourism VAT, in Scotland and across the UK.
Ms Jardine announced her call for a reduction to 5% VAT in the sector. Welcoming the proposal, UKHospitality CEO, Kate Nicholls, said: “Tourism in Scotland is already worth £11 billion, 4.5% of the total Scottish economy, and could contribute yet more with a more competitive tax system. On 2012 figures, a reduction to 5% would deliver 11,000 jobs and over £300 million in revenue in Scotland alone. Across the UK, the benefits would be enormous.
“A reduction in VAT to 5% would provide a significant boost to tourism allowing it to reach its full potential. Tourism is an industry which reaches every corner of the UK, especially the UK’s coastal and rural areas, communities which are in need of growth after prolonged underinvestment. Independent research has shown that over ten years a reduction would produce £4.6 billion in revenue, and provide over 100,000 jobs across the UK and we urge the government to support this uniquely beneficial and common-sense policy.”