Seasonal Hospitality Businesses in Coastal Areas
Debate between Alison Hume and Joe Robertson(1 week, 3 days ago)
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Joe Robertson
The hon. Gentleman is right, we need both. Our tourism and hospitality sector is one of the most highly taxed tourism and hospitality sectors, compared with our European neighbours, who already have a cost-competitive advantage.
Alison Hume (Scarborough and Whitby) (Lab)
The hon. Member is talking about holidays. Our Chancellor has just announced the great British summer savings, which will see VAT slashed from 20% to 5% on activities, children’s meals and attractions. Does he welcome that move?
Joe Robertson
I understand that the hon. Lady is trying to sell her own Chancellor’s policies, but this support is pretty thin—a short, indeed temporary, VAT tax giveaway, set against the severe damage done by two successive Budgets, which runs into the tens of billions of pounds.
On business rates, the hospitality sector pays 10% of all eligible business rates but accounts for only 2% of relevant economic activity. That equates to an overpayment of £1.8 billion. The Government legislated for a 20% discount; what they have delivered is a 5% discount. Without a sector-wide solution, 963 restaurants and 574 hotels could face closure this year, and we are already seeing closures.