Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of limiting the reduction in tourism VAT to accommodation and attractions.

The government explored the impact of VAT on the tourism industry in its recent call for evidence, and published its response at Budget 2018.

A VAT reduction to accommodation and attractions has been estimated to cost the Exchequer £3 billion in the first year. This must be balanced by increased borrowing, reduced public spending or increased taxation elsewhere.

In light of the fiscal implications of a UK wide reform, the government will not be making a change to VAT and tourism at this time.