Hospitality Sector VAT: Local Economies, Employment and Growth

Mike Wood Excerpts

Thursday 12th November 2026 Westminster Hall

[Chris Webb]

I thank the right hon. Lady for her intervention. I hope that my actions as the chair of the APPG on hospitality and tourism for the last two and a half years have shown that I will work with anyone across this House to support hospitality. The APPG has been quite vocal, including in our inquiries, about why there is a need to lower VAT, and we will continue to make that case.

Thousands of residents in my constituency have backed my idea to build a state-of-the-art arena at the Blackpool Central site, and we also have Government support for this proposal. However, by going further to support our tourism businesses at a policy level, we can give large investors the confidence to come to Blackpool, and ensure its future as a modern and leading entertainment destination, especially as we are in the final of the city of culture contest, which I know we will win.

Blackpool was built as a place of rest, relaxation and entertainment for the working classes, and our visitors today continue to be highly price-sensitive. Blackpool prides itself on being able to offer a good family trip for the price of car parking, an ice cream and a fistful of 2p coins to feed the arcade machines. Thanks to the work of Blackpool council and Blackpool Tourism Ltd, we offer large-scale free events, ranging from our brilliant airshow to the Blackpool Illuminations, which bring hordes of tourists to our coast in search of a family budget-friendly trip.

However, we also rely on families spending much more money than they do already. When offered value for money, they will do so, but small increases in the cost of accommodation, meals, attractions and entertainment influence how long a family chooses to stay.

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

The hon. Gentleman is making a powerful speech about the importance of the hospitality sector and the impact of even relatively small increases in costs for families. Does he agree that the Government ought to drop their proposals for an overnight visitor levy, which will only make accommodation more expensive for the families visiting his constituency?

[Chris Webb]

The hon. Gentleman has clearly had a quick glance at what I am coming to next in my speech. I welcome the fact that visitor levy receipts will stay local and will support tourism-related priorities, but businesses in places like mine have understandably raised concerns about the cumulative impact of rising costs. The levy is just one more addition to a growing list. What might work in the centre of Manchester does not work in coastal communities like Blackpool.