Register to get 1 free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
The European Union (EU) referendum result could lead to the abolition of VAT on tourism, a senior cabinet minister has claimed.
Speaking at a British Hospitality Association (BHA) summit in London, John Whittingdale, secretary of state for culture, media and sport, said: “If we wanted, for example, to abolish VAT on accommodation or attractions, we could now do so. We couldn’t have done when we were in the European Union.”
Whittingdale echoed remarks by Nick Varney, chairman of the BHA and chief executive of Merlin Entertainments, who said: “Tourism and leisure can continue to grow under Brexit. Initially a weaker pound will encourage visitors and also exports will flourish.
“We should seize the moment and lock in that competitive advantage with a permanent cut to VAT for accommodation and attractions, and possibly in the future also for restaurants.”
He said that once uncertainty had died down British tourists would feel encouraged to spend more in this country and visitors from Europe would be more likely to visit the UK.
Varney is the leader of the Campaign to Cut Tourism VAT, which calls on the government to reduce the rate of tourism VAT from 20% to 5%.
