Support for VAT reduction, according to BHA survey

A survey of over 200 members of the British Hospitality Association (BHA) shows that “an overwhelming majority” support the campaign to reduce VAT to five per cent on hotel accommodation.

The survey marks the launch of new VAT pages on the BHA website – www.bha.org.uk – giving updated developments on the campaign, which also includes a proposed VAT reduction on attractions and meals away-from-home, as well as a comprehensive series of questions and answers which explain the background to the campaign and its aims and objectives. A Facebook campaign is also being launched.  

Nearly 98 per cent of respondents said that “the current VAT rate hinders the competitiveness of the UK hospitality and attractions industry,” while 85 per cent forecasted that a reduction to five per cent would create new jobs and increase staff numbers.

Ufi Ibrahim, BHA’s chief executive, said: “These findings emphasise our belief that a reduction in VAT will boost customer demand. This will lead to the creation of more and more jobs – our research indicates that 78,000 jobs will be created following a reduction of VAT to five per cent. We will continue to press home these arguments to government.”