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Cut Tourism VAT (CTV) has expressed its disappointment at the main parties’ manifestos in the upcoming general election.
The campaigners raised concerns that neither the Conservatives, Labour or Liberal Democrats had committed to reducing the tax on tourism to bring the UK in line with other European countries.
Dermot King, Butlins MD and chairman of CTV, said: “The next government has the opportunity to support hospitality and businesses across the UK by reducing the rate of tourism VAT from 20% to 5%.”
Some 33 countries across Europe have a reduced tourism VAT, varying from 7-10% compared to the UK’s 20%. King said that because of this, “UK businesses and consumers are suffering”.
He added: “If the government was to reduce the rate of VAT on accommodations and attraction on day one of the next parliament by the end of five year term they would have generated almost £1bn in extra revenue for the Treasury, 92,000 jobs and reduced the balance of trade deficit by £7.8bn.
“A win for the government, a win for business and most importantly a win for the consumer.”
