UKH Scotland welcomes SNP’s commitment to lower hospitality VAT

UKHospitality has welcomed the Scottish National Party’s (SNP) commitment to lower the VAT rate for hospitality. 

According to the SNP manifesto, the party vows that the Scottish government will reform the levy, reducing it in hospitality and tourism. 

Lowering the rate of VAT for hospitality has been a key ask of UKHospitality and it stated that a lower VAT rate can deliver growth, more jobs and lower prices.

Leon Thompson, executive director of UKHospitality Scotland, said: “Lowering the rate of VAT for hospitality has been a long-standing ask of UKHospitality’s and I’m pleased to see the SNP commit to that in its manifesto.

“We urge the SNP to work with the UK Government to make the case for this change to VAT, which would drive economic growth, create new jobs and keep prices low for consumers. This needs to be part of wider work to create a sustainable tax burden for both businesses and consumers. At the moment, the tax burden in Scotland is too high and it’s affecting our ability to recruit talent.”

Thompson added: “UKHospitality Scotland supports the call for a devolved migration system. A Scotland specific visa would enable sectors with skills shortages, like hospitality, to recruit the essential workers they need.

“Fundamentally, we need both the Scottish and UK Governments to work constructively to deliver a regulatory and tax environment that helps hospitality thrive. Mirroring in Scotland any positive changes to business rates in England must be part of that.”

He concluded: “Scotland is a world-leading destination for a reason, and hospitality is a huge part of that. Our sector is the shop window for Scotland and has a track record of delivering investment, growth and jobs to the country.

“It’s essential our ability to serve Scotland and create places where people want to live, work and invest is supported and empowered by both Scottish and UK Governments.”