Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will make an assessment of the potential merits of a reduction in VAT for small businesses in the tourism sector.

The Government has reviewed the economic case for a reduction in VAT for the hospitality sector.

In our view there is insufficient evidence to justify a reduction in VAT.

Reducing VAT on all tourism related activities would have a potential cost in excess of £10 billion in the first year alone.