VAT ON TOURISM

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 24 out of 27 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 made a positive impact by increasing investment and jobs; acknowledges that, as a result, local regions 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 and attractions; and further recognises that such a move would strengthen the wider economy, support job creation and generate investment in local businesses.