Tourism: VAT

(asked on 23rd March 2017) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, pursuant to his oral contribution of 28 February 2017, Official Report, column 157, whether the £10 billion includes catering services; and what the corresponding figure would be for reduced VAT receipts directly attributable to accommodation and visitor attractions if VAT were reduced to five per cent on those items.


Answered by
 Portrait
Jane Ellison
This question was answered on 28th March 2017

The £10 billion annual cost of reducing VAT to five per cent on tourism covers accommodation, visitor attractions and restaurants. The cost of reducing VAT to five per cent on accommodation and visitor attractions alone is estimated at £3.1 billion annually.

The Government has carefully considered the evidence for applying a five per cent reduced rate of VAT on accommodation and visitor attractions and believes that the costs of doing so outweigh the benefits.

Reticulating Splines