Tourism

Lord Foster of Bath Excerpts

Wednesday 23rd May 2018 Lords Chamber

Asked by

[Lord Foster of Bath]

To ask Her Majesty’s Government what plans they have to provide additional support for the tourism industry.

[Viscount Younger of Leckie (Con)]

My Lords, the UK has a strong visitor offer and a thriving tourism industry, supported by the Government’s tourism action plan. Initiatives such as the £40 million Discover England fund develop new and innovative products to offer both domestic and inbound visitors. We are working hard to support our first-class business visits and events sector. The industry, in close collaboration with VisitBritain, has proposed a tourism sector deal, which the Government are considering.

[Lord Foster of Bath (LD)]

My Lords, I thank the Minister for his positive response, but the Government recently announced that they are considering a cut in tourism VAT for accommodation and attractions in Northern Ireland—no doubt a response to a DUP request. But why just Northern Ireland? Out of 36 European countries, only three, including the United Kingdom, have failed to reduce VAT for tourism, yet if a cut of 5% took place, over 10 years tourist businesses in this country would be hugely boosted, 120,000 additional jobs would be created and £4.6 billion would go into the Treasury coffers. So why do the Government not get on with this measure and do it for the whole country, not just consider it for Northern Ireland only?

[Viscount Younger of Leckie]

The noble Lord is correct that the call for evidence is focused on tourism in Northern Ireland, but of course responses from other parts of the UK would be very welcome, and there is still time: the consultation closes on 5 June. The Government are certainly aware of concerns about the impact of VAT on tourism and that is why at the Spring Statement the Treasury launched a call for evidence on the impact of VAT.