Roger Williams
Main Page: Roger Williams (Liberal Democrat - Brecon and Radnorshire)Department Debates - View all Roger Williams's debates with the HM Treasury
(9 years, 8 months ago)
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Jim Shannon
My hon. Friend is right. Hospitality services—golf clubs, hotels, restaurants and attractions—all suffer as a result of VAT on tourism, and it is important that we try to address the situation. That feeling is particularly tangible in Northern Ireland because we share a border with the Republic, which has a much lower VAT rate. Although we have seen an improvement in visitor numbers over the past year, which is good news, the benefits of a VAT reduction might have assisted those numbers even further. We are four years behind the Republic in implementing this decision, and I ask why. There has been a long-running campaign by the hospitality industry in the United Kingdom to reduce the VAT rate below the standard of 20% for services supplied to tourists, and I re-emphasise the importance of that industry to our economy. Tourism makes up 10% of Northern Ireland’s GDP and provides 40,000 jobs, and the sector is still growing.
Roger Williams (Brecon and Radnorshire) (LD)
Does the hon. Gentleman agree that one of the main challenges for tourism in our constituencies is extending the tourist season? A reduction in VAT would make weekend breaks and mini-breaks all the more affordable and attractive.
Jim Shannon
That illustrates the case for a VAT reduction. The tourist industry gives so much to us: it gives us global status as a destination, and growth. The industry aims to create more jobs, improve services and enhance the hospitality experience for which the UK is renowned.
The British Hospitality Association, when questioning operators within the industry, received some incredible responses, of which I am sure the Minister is aware. Some 82% of respondents said that, in the event of a reduction in VAT, they would invest more in the service they supply; 67% would create further employment positions; 57% would provide more training; and just under half would increase wages. There is a clear indication from the tourism industry that it could do a lot more. Although I recognise that there are concerns about the restrictions on the room for manoeuvre on public expenditure, a decision to reduce VAT would have long-term benefits, not least of which would be tourism spending spilling over into all areas of the economy in Strangford, across Northern Ireland and across the United Kingdom.
It is important to rectify youth unemployment, and we can do that by expanding the tourism sector. In Northern Ireland we have a large number of enthusiastic young people who are taking tourism, catering and hospitality courses in a number of our South Eastern Regional colleges. There is clear interest and growth in the sector, and all we need to do is kick-start the sector. My local South Eastern Regional college in Ards in my Strangford constituency is training young people to an exceptionally high standard, and it is important to maintain excellence in this area. The launch of the Diageo tourism and hospitality academy, run by Belfast metropolitan college, is another indication of what we can do.
The Cut Tourism VAT campaign emphasises that British families and international visitors who choose a British holiday will pay almost three times as much VAT as they would in a French or German break, and twice as much VAT as they would in a break in Italy, Spain or the Republic of Ireland. Reducing VAT for tourism would help to lower prices all round, and it would incentivise families to take an annual trip that they might otherwise be reconsidering.
I have attended a number of events organised by Pubs of Ulster, and I believe that we should support the UK-wide Cut Tourism VAT campaign. Northern Ireland is home to some 10 breweries, and my constituency of Strangford is home to 63 pubs that support 672 jobs, 138 of which are for 16 to 24-year-olds, whom we should be encouraging. We have the attractions, restaurants, bars and locations, and it is now time to ensure that we can offer even more by asking the Minister genuinely and sincerely to consider reducing VAT.