Tourism: Covid-19

Debate between Alistair Carmichael and Virginia Crosbie

Thursday 10th September 2020 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I apologise for not having been here for most of the debate, Madam Deputy Speaker; I have been trying to multi-task today and have been failing miserably.

I wish to pick up on the point made by the hon. Member for North West Norfolk (James Wild) about the reduced VAT rate, as I, along with many others, have been campaigning for that for many years. It is a welcome move, but, as he said, it requires a bit more consideration, with a view to a more open-minded approach from the Treasury to see it extended. I believe it is due to run until January or February of next year, but we are talking about people who have come out of six months of winter into spring of this year, when they were earning very little, and then been closed down for most of what would be their economically productive season. Accordingly, they simply have not opened up and they will be going back into their quiet season again, with a view to going back into their full productive effort around Easter next year, by which time the benefit of a reduced VAT rate is not going to be there for them.

I also say to Treasury Ministers, through the Minister on the Front Bench, that one of their objections to a reduced VAT rate for the visitor economy over the years has always been that they do not think it would have the effect on the tax take that is claimed for it. After a significant period at the reduced rate, if it is extended beyond that which we have at the moment, we will have reliable data that should settle that question once and for all. The case for a continuation of the VAT reduction period is strong.

As the local economy in the Northern Isles was opening up over the summer months, I was able to go out, and as the visitor economy is so important for us, I took time to talk to hoteliers. The thing that came across to me loud and clear was their frustration at having no control over so many of the things they need to rebuild their businesses and get money back into our community.

[Virginia Crosbie (Ynys Môn) (Con)]

As an MP for an island constituency, like me, does the right hon. Gentleman agree that the financial packages provided by this Government are particularly important for island and coastal communities?