House of Commons
VAT on tourism
EDM #385
Tabled 27 April 2020
2019-21 Session
That this House recognises the major importance of the tourism sector to the UK economy and that tourism-related businesses lie at the heart of many local communities; notes that this sector has been disproportionally impacted by the covid-19 epidemic; is concerned by reports that in areas of the UK reliant on hospitality and tourism, up to 35 per cent of jobs are permanently at risk because of the pandemic, and that Visit Britain estimates that covid-19 will cost the tourism industry around £15 billion in 2020, with 22 million fewer visitors to the UK; further notes that a reduced rate of VAT for tourism has long been recommended by three select committees and attracted cross-party support; highlights that the UK is one of only three European countries to have never taken advantage of the EU rules allowing a reduced VAT rate on tourism and that Germany has now cut VAT to 7 per cent to help specific sectors of the economy; calls on the Government to reduce tourism VAT to 5 per cent to help this sector recover from the pandemic, at the same time as strengthening the wider economy, supporting job creation and generating investment in local businesses.