Reducing VAT on tourism businesses - letter to the Treasury

Our tourism businesses are part of the lifeblood of the Brighton economy. 20% VAT levels hit them particularly hard as they have to pass all of this onto the customer, and at Brighton and Hove Chamber of Commerce we think this VAT rate should be a much lower level.  We want more people to come to Brighton, enjoy our lovely city and spend money here.  That's why we, along with the Tourism Alliance and local MP Caroline Lucas have written to the Treasury to ask them to reduce VAT for our tourism businesses.  You can see a copy of our letter below. Let's see what happens.

David Gauke MP
Exchequer Secretary to the Treasury
HM Treasury
1 Horseguards Road
London
SW1A 2HQ
 
Date: 26th March 2014.
Ref: ML.C0010.AR.ID.26.03.14.
 

Dear David,
 
We write jointly, in advance of World Tourism Week, which as you will know is a week-long celebration of events showcasing the quality and vibrancy of the tourism industry and the value it brings to the nation.  
 
As the Treasury Minister responsible for VAT policy, we would like to extend an invitation to you to come and visit Brighton and Hove and see for yourself the fantastic tourism services that are so valuable in making the city an attractive and exciting place to visit.
 
We believe the evidence shows that reducing VAT on visitor accommodation and attractions to 5% would lead to an even greater contribution from tourism to our economy.  Lowering VAT could end the competitive disadvantage that the UK tourism industry currently faces compared to other European countries, most of which have a reduced rate of tax on tourism.
 
A VAT reduction would also make a huge difference to local businesses in Brighton and Hove, boosting job creation and supporting and encouraging our vital and vibrant tourism industry.  It would also help create a 'feel good' factor, something families so badly need.
 
We are pleased that the Treasury is engaging with the Campaign for Reduced Tourism VAT and we are aware of your recent correspondence with the campaign Chair, Graham Wason.  We would be very interested in seeing a copy of your response to the points raised by Graham, in his letter to you of 15 March, a copy of which is enclosed.
 
If you were to come to Brighton and Hove to discuss supporting our tourism sector your visit would be greatly appreciated locally.
 
We look forward to your reply.  
 
Yours sincerely,

Julia Chanteray, President, Brighton and Hove Chamber of Commerce
Soozie Campbell, Chair, Brighton and Hove Tourism Alliance
Caroline Lucas, MP for Brighton Pavilion

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