VAT ON TOURISM

Early day motion 50, tabled 19 May 2016 by Baroness Ritchie of Downpatrick (Social Democratic and Labour Party). Signed by 29 members.

That this House recognises the value of the tourism sector; notes that tourism-related businesses lie at the heart of the local community and economy; further notes that 25 out of 28 EU states, including the Republic of Ireland, take advantage of a reduced rate of VAT for some part of their tourism sector, and that this has had a positive impact by increasing investment and jobs; acknowledges that, as a result, localities in the UK that have a high reliance on the tourism sector are at a competitive disadvantage compared to other EU states; highlights the economic study produced by Professor Adam Blake, using the Treasury's own modelling technique, which showed that a cut in tourism VAT could increase gross domestic product by up to £4 billion per year; calls on the Chancellor of the Exchequer to introduce a sector-specific VAT reduction for certain tourism-related products, including accommodation, food and attractions; notes that a reduced rate of VAT for tourism has been recommended by both the Welsh Affairs and Culture, Media and Sport Committees; and further recognises that such a move would provide a much-needed boost in exports, would strengthen the wider economy, support job creation and generate investment in local businesses.

Signatures by party: Scottish National Party 14, Labour 4, DUP 3, Plaid Cymru 3, Social Democratic and Labour Party 3, Liberal Democrat 1, UUP 1.