Skip to content

VAT and the tourist industry

  • by JW

Looking to cuts in the budget.


Back in 2020 the then-Chancellor extended a VAT cut for the hospitality sector. And last year, the current Chancellor extended business rate relief for hospitality in the Autumn Statement.

Now it seems that everyone is hoping for action tomorrow – with calls from the tourism industry for a VAT cut in the budgetConservative MPs demanding a VAT cut for struggling pubs and restaurants, and the Country Land and Business Association heading a campaign for a reduction in VAT to boost rural tourism.

Meanwhile, a Devon hotel owner is pushing for the same:

The owner of a closed hotel and sculpture garden has called on the government to cut VAT for tourism and hospitality businesses. Industry leaders and a Devon MP are also calling on the chancellor to cut the tax in the budget on Wednesday. Alex Kleiner, owner of the Broomhill Estate in north Devon, said a 5% decrease would have made a crucial difference to survival.

“A 5% reduction in VAT would have reduced my overall VAT bill by half over the last seven quarters. That reduction would have been more than all of my electricity costs.” Mr Kleiner said he had also been hit by a “perfect storm” of high interest rates, business rates and energy costs that had made his business “no longer tenable”.

With the story about the Devon hotel owner and industry leaders urging VAT cut for hospitality reaching India…