Oral Answers to Questions

Debate between Lord Hammond of Runnymede and David Warburton

Tuesday 28th February 2017 Commons Chamber

[Mr Philip Hammond]

As the hon. Lady will know, I cannot discuss the affairs of an individual taxpayer in this House, but this Government and their immediate predecessor have taken more steps over seven years than the previous Labour Government did over their whole 13 years in office to address the abuse of the tax system and aggressive tax avoidance and evasion.

[David Warburton (Somerton and Frome) (Con)]

T5. In the past year international tourist rates and spend grew faster in the south-west than in London, and the south-west also attracted more domestic tourists than any other region. Given the Mayor of London’s plans for a hotel levy, will the Chancellor look again at cutting the rate of VAT on tourism?

[Mr Hammond]

I agree that when a man is tired of London he should visit Somerset. Although tourism growth across the UK is indeed very welcome, and the Government will look at all opportunities to support it, reducing VAT would cost up to £10 billion, which is money that is needed to underpin our public services and to help to deal with our deficit.