Treasury

Lord Hammond of Runnymede Excerpts

Thursday 1st March 2018 Ministerial Corrections

[Sir Hugo Swire]

Reducing tourism VAT to 5% after we leave the European Union would create an extra 121,000 jobs and £4.6 billion in revenue to the Treasury over 10 years. It would be a great boost not only to our great cities, but to our great coastal towns, such as Exmouth, Sidmouth and Budleigh Salterton in my East Devon constituency. Will the Chancellor commit to looking again at this issue as we leave the EU?

[Mr Hammond]

My right hon. Friend is nothing if not persistent and consistent. I cannot remember how many times he has raised this issue. There have been numerous requests for new VAT reliefs since the referendum, some of which are currently not permitted under EU law. We have calculated that if we were to grant all the VAT relief requests that we have received, that would come to more than £38 billion a year. On VAT and tourism, the Government have received representations on this issue, and we are looking again at the case for change. We have issued a call for evidence on the impact of VAT and air passenger duty on tourism in Northern Ireland, and we will certainly keep this issue under careful review. [Official Report, 27 February 2018, Vol. 636, c. 678.]

Letter of correction from Mr Hammond:

An error has been identified in the Oral Answer given to the right hon. Member for East Devon (Sir Hugo Swire) at Treasury Topical Questions on 27 February 2018. The correct answer should have been:

[Mr Hammond]

My right hon. Friend is nothing if not persistent and consistent. I cannot remember how many times he has raised this issue. There have been numerous requests for new VAT reliefs since the referendum, some of which are currently not permitted under EU law. We have calculated that if we were to grant all the VAT relief requests that we have received, that would come to more than £38 billion a year. On VAT and tourism, the Government have received representations on this issue, and we are looking again at the case for change. We will publish a call for evidence on the impact of VAT and air passenger duty on tourism in Northern Ireland, and we will certainly keep this issue under careful review.