Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, whether his Department has estimated the fiscal gains derived through the dynamic effects of reducing VAT on accommodation and attractions to five per cent.

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, estimated at £3.1 billion annually, outweigh the benefits.

The Government holds all taxes under review and will always look to consider new evidence where it comes to light.