CLA: Chancellor announces VAT cut on tourism sector

Chancellor of the Exchequer Rishi Sunak has today announced he will be cutting VAT on tourism businesses from 20% to 5% as part of a suite of measures designed to help sectors recover from Covid-19.

Responding to this, CLA President Mark Bridgeman said: “After intense lobbying from the Country Land and Business Association, we’re delighted that the Government has cut VAT to help our tourism sector fight back from a devastating start to the year.

“Until now VAT on tourism businesses has been much higher than in other comparable countries* putting domestic tourism businesses at a competitive disadvantage to holiday providers overseas.  This welcome change from Government means more people will be able to afford to enjoy a holiday in the Great British countryside whilst also helping to revive rural economies across the country.

“The next challenge will be to ensure we are able to stimulate demand not just in the short term, but through the less popular winter months too.”

The CLA called for a VAT reduction when it published its paper  ‘COVID-19: Restarting the economy in rural areas’.

*VAT on comparable businesses in France is 10%, Spain 10% and Greece 13%.