Bute MP backs campaign to cut tourism VAT

Argyll and Bute's Liberal Democrat MP Alan Reid.
Argyll and Bute's Liberal Democrat MP Alan Reid.

Argyll and Bute MP Alan Reid has given his backing to a national campaign calling for the Chancellor to cut VAT on tourism to just five per cent.

The Cut Tourism VAT campaign estimates that the area’s economy would receive a £9.1 million boost if the UK government does what it is asking.

The campaign is run by a coalition of hotels, self-catering, caravan sites, B&Bs and visitor attractions is calling on the Government to boost the economy in the upcoming budget by cutting VAT on tourism, as 25 of the 28 countries in the European Union already do.

The campaign has used independent research by Deloitte and Oxford Economics to calculate the impact both on local communities and the UK economy as a whole of a 15-point reduction in VAT.

Mr ReidSAT said: “A reduction of VAT on tourism from 20 per cent to 5 per cent would make a huge difference to Argyll and Bute resulting in extra jobs and an additional £9.1m to the local economy.

“That’s why I’m backing the campaign to Cut Tourism VAT and I’m asking the Chancellor of the Exchequer to give tourism in Scotland a well-deserved boost.”

Graham Wason, Chairman of Cut Tourism VAT, said: “International competition for tourism is increasing while the UK’s share of the global tourism market is declining, and I am delighted that Alan Reid MP is supporting our call for an urgent cut in tourism VAT which would boost the tourism industry and the wider economy in Argyll and Bute.”