‘Good prospect’ of tourism VAT cut

London Eye

Representatives from a campaign to cut VAT on tourist attractions have spoken of a “good prospect” of the British government making a reduction.

The campaign was founded when the rate of VAT – or value added tax – was increased from 17.5% to 20% in 2011.

Chancellor of the Exchequer George Osbourne will announce his budget on Wednesday, and he has once again been called on to make a reduction to the VAT rate on tourist attractions and hotel rooms.

Dermot King, managing director of Butlins, and chairman of the Campaign to Cut Tourism VAT, told Ride Rater that tourism is contributing significantly to the British economy.

He said: “Having created one in five new jobs in the last five years, the tourism and hospitality industry has been instrumental in helping this government to reduce unemployment and achieve economic growth.

“The Campaign to Cut Tourism VAT is calling on the chancellor to recognise the vital economic contribution of our industry and use this Budget as an opportunity to act on the mounting evidence and political momentum that supports a reduction in tourism VAT.”

The campaign also claims to have gained the support of 135 members of the UK parliament, across the political parties.

Vernon Hunt, of the British Hospitality Association said: “With growing economic and political support and the hard work of businesses around the country writing to their MPs, we firmly believe that there is a good prospect of achieving a reduction with this government.”

In 2014, campaigners told this website that they believed that attractions would pass on most of the savings from any VAT cut to customers.