Wales

Quarterly update

October 2017

Tourism Tax

In their recent annual budget statement, the Welsh Government announced it would be looking at a Tourism Tax as one of four new ideas for specific Wales only taxation that could be introduced in the near future under new powers it has had devolved from Westminster.

The others under consideration are a levy to support social care; a vacant land tax and a disposable plastic tax.

A consultation process on all four options will be open soon and BHA will be at the forefront of opposition to this new concept. We already have very real worries over the recent "cauldron of costs" that have boiled over in the last 18 months, including increases in business rates, wage increases, rising inflation and food and energy hikes. This additional and new tax has the potential to undermine business sustainability, investment and, most importantly, our employment plans. It would also be handing an unfair advantage to our competitors in England. We will seek to achieve positive progress on this matter with Welsh Government once the full details are available.

The Welsh Assembly debated a motion by Nick Ramsay AM (Monmouth) proposing that “the National Assembly for Wales: Does not believe that a tourism tax should be implemented in Wales”. The debate heard cross-party opposition for Wales’ Proposed Tourism Tax  and prompted a call for a Cut in Tourism VAT instead.  The issue will be raised again by Plaid Cymru at the UK Budget on 22nd November who will be placing an amendment to the UK budget in order to achieve a cut in VAT in tourism.

Apart from this new obstacle, activities with Welsh Government Ministers and officials has been progressing positively and well with talks around business rates and their impact on business survival, sustainability, jobs and employment, the political and economic repercussions of Brexit along with the content of the KPMG migrant working report and the progression of the ten-year strategy.


October 26 2017: Cross Party condemnation of the Welsh Assembly’s proposed Tourism Tax, lead to calls for Cut Tourism Vat
October 4 2017: Hospitality industry concerned about possible Welsh tourism tax
June 21 2017:


For more information about these issues or to get involved, please contact: 

 

David Chapman, Executive Director for Wales

david.chapman@bha.org.uk

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