Oral Answers to Questions Debate

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Department: Leader of the House

Oral Answers to Questions

John Penrose Excerpts
Thursday 14th June 2012

(12 years, 6 months ago)

Commons Chamber
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Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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Does the Secretary of State accept that a reduction in VAT for hotel accommodation and tourist attractions would deliver a huge boost to jobs and tourism in places such as Brighton and Hove, would bring us into line with the rest of the EU, most of which has much lower VAT on hotels and visitor attractions, and would deliver a net benefit to the Treasury? What’s not to like?

John Penrose Portrait The Parliamentary Under-Secretary of State for Culture, Olympics, Media and Sport (John Penrose)
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The industry is making this case very strongly to the Treasury and it is clearly an issue for the Treasury to respond to. What is causing problems at the moment is that the industry is promising higher returns, as the hon. Lady rightly points out, but the Treasury gets an awful lot of such promises from a whole variety of different parts of the economy and it would need some positive proof before it would be willing to engage on such an issue.

The Leader of the House was asked—