A parliamentary committee has approved an application from Caroline and two other backbench MPs for a debate on cutting VAT on tourism to 5%.

The debate will take place in Westminster Hall on Tuesday 11 February from 9:30am to 11:00am.

Caroline said: 

“Brighton and Hove has some of the best visitor attractions in the country, and our tourism industry accounts for a large proportion of the city’s workforce.  But the fact that the UK is one of the few European countries that doesn’t have a reduced rate of tax on tourism puts us at a major disadvantage. 

“Cutting VAT on tourism would make a real difference to local businesses and help create jobs for people in Brighton and Hove.  It would also make a day out for local families for more affordable, provide another reason for people to take their holidays closer to home, and deliver revenue to the Treasury.  Ministers cannot continue to ignore these arguments.”

At the end of last year, Caroline wrote to the Treasury calling for the rate of VAT on tourism to be cut from 20% to 5%, arguing that it would create jobs, and end the competitive disadvantage currently facing the UK tourism industry in the European market. 

The UK is one of only four countries in the EU with no reduced rate of VAT on tourism.  The others are Slovakia, Lithuania and Denmark.   A 2011 report by Deloitte and Touche found that a 5% reduction in VAT would deliver £2.6 billion in extra revenue to the Treasury over a decade, and create 80,000 jobs over two to three years.

View the Cut Tourism VAT factsheet

Contact Steve Harman  steve.harman@parliament.uk  07590  050565