Hospitality Industry: VAT
Debate between Baroness Manzoor and Lord Pitt-Watson(2 weeks, 1 day ago)
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Lord Pitt-Watson (Lab)
I thank the noble Lord for that question. It brings me back to the fundamental question that we have to think about, which is that we can live only within our means. A VAT cut of 10 percentage points would cost £11 billion. That is about the same cost as the Royal Navy. We need to ask ourselves what the priorities will be. As we look to the Budget, I know that the Chancellor will be looking at absolutely everything, but I thought that benchmark might be helpful for your Lordships’ House.
Baroness Manzoor (Con)
My Lords, the Prime Minister stated his support for the tourist tax, but the impact assessment of it has not really been made and some parts of the country will do better than others. Can the Minister say what assessment the Government have made, despite the fact that it is potentially a devolution area?
Lord Pitt-Watson (Lab)
The assessment is that this should be in the power of the local authority. It will be devolved. On any cost-benefit analysis that has been done, given that I was alerted to this Question only two hours ago, I do not have that with me. If I could write to the noble Baroness, I would be happy so to do.