Employment: Rural Employment Debate
Full Debate: Read Full DebateDepartment: Department for Environment, Food and Rural Affairs
Lord Lee of Trafford
Main Page: Lord Lee of Trafford (Liberal Democrat - Life peer)Department Debates - View all Lord Lee of Trafford's debates with the Department for Environment, Food and Rural Affairs
Employment: Rural Employment
Lord Lee of Trafford Excerpts(12 years ago)
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Lord Lee of Trafford
My Lords, tourism turnover in the rural economy is nearly three times that of agriculture. Yesterday at Westminster, the Cut Tourism VAT campaign was launched, supported by the whole of the industry. Compared with our 20% rate, accommodation VAT is 10% in Italy, 8% in Spain and 7% in France and Germany. As a former Treasury Minister, does my noble friend appreciate that independent reports indicate that a cut in VAT on accommodation would boost Exchequer revenues, boost tourism and thus boost employment in the rural economy?
Lord De Mauley
My noble friend has rather overpromoted me. However, in answer to his question, the Government recognise the importance of tourism to rural employment. I do not think that we can go as far as he asked, but the Rural Economy Growth Review showed that tourism is a significant contributor to the rural economy, with potential for significant further growth. Before the Autumn Statement, the Government announced a £25 million initiative to promote rural tourism and to support rural tourism businesses.