Hospitality Industry: VAT
Debate between Lord Pitt-Watson and Earl of Clancarty(2 weeks, 2 days ago)
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Lord Pitt-Watson (Lab)
As the noble Lord may be aware, those sorts of rights exist for mayors and other local authorities in almost every other European country. In the UK they will need to consult locally before they introduce any such tax, but many mayors will believe that the extra revenues can raise the economy of their local area and provide better facilities so that the hospitality industry, along with everyone else, will prosper. As I said, this is part of a devolution agenda, but it is one where there will be consultation before any additional charge is introduced. It will be proportionate, of course, in the sense that it is a percentage of the cost, so it would cost more for an expensive hotel than for lower-cost accommodation.
The Earl of Clancarty (CB)
My Lords, picking up on that point, does the Minister agree that a tourist tax spent in the main on arts and culture would be logical, since that is what tourists come here for? If our cultural attractions are properly maintained and developed, that will in turn significantly help the hospitality industry.