Employment: Rural Employment

Debate between Lord Lee of Trafford and Lord De Mauley

Wednesday 5th December 2012 Lords Chamber

[Lord Lee of Trafford]

My Lords, tourism turnover in the rural economy is nearly three times that of agriculture. Yesterday at Westminster, the Cut Tourism VAT campaign was launched, supported by the whole of the industry. Compared with our 20% rate, accommodation VAT is 10% in Italy, 8% in Spain and 7% in France and Germany. As a former Treasury Minister, does my noble friend appreciate that independent reports indicate that a cut in VAT on accommodation would boost Exchequer revenues, boost tourism and thus boost employment in the rural economy?

[Lord De Mauley]

My noble friend has rather overpromoted me. However, in answer to his question, the Government recognise the importance of tourism to rural employment. I do not think that we can go as far as he asked, but the Rural Economy Growth Review showed that tourism is a significant contributor to the rural economy, with potential for significant further growth. Before the Autumn Statement, the Government announced a £25 million initiative to promote rural tourism and to support rural tourism businesses.