Greg Backs Extension of VAT Cut
East Yorkshire MP Greg Knight is backing the decision by the Chancellor of the Exchequer Rishi Sunak MP to extend the VAT cut on ‘hospitality and tourism’ until March 31st next year.
The move, which follows representations from Sir Greg and other MPs from tourist areas will see a 5% VAT rate applied to the sector until the end of March 2021, which was previously set to revert to 20% in January.
In welcoming the announcement Sir Greg said: “Hospitality and tourism have been two of the most affected sectors by the pandemic, so this targeted support is vital to sustain more than 150,000 businesses and 2.4 million jobs across the UK, including many in East Yorkshire.
Businesses will be free to either pass on the saving to customers through lower prices or to use the VAT cut to help boost their bottom line income hard-hit by the pandemic.
Knight Hails VAT Cut on Tourism
East Yorkshire MP Sir Greg Knight has welcomed the Chancellor’s decision to cut the rate of VAT on tourism from 20% to 5% to help the industry bounce back from the COVID-19 crisis.
Following a campaign earlier this year from Sir Greg and other MPs representing tourist areas, the Chancellor Rishi Sunak MP has announced a slash in the VAT rate to 5% for the next 6 months.
Sir Greg says: “In East Yorkshire, the tourism and hospitality sector have been hardest hit by the shutdown. I have been calling for this stimulus to boost UK tourism and encourage people to take holidays in places like Bridlington or the Wolds, rather than spending their money abroad”.
Sir Greg has also welcomed the added bonus of the “Eat out to help out” scheme which will also give UK diners up to 50% off their meals out from Mondays – Wednesday in restaurants, cafes and pubs, throughout August.
“Now the lockdown is eased and restaurants, pubs and cafes are made COVID-safe and observing social distancing requirements, it’s time to get Britain’s tourism industry back to business. There are no better ways of incentivising Brits to take their holidays in the UK than by making them cheaper. I am pleased that the Chancellor’s announcement today shows he agrees”.
Sir Greg added: “There is no doubt that this package of benefits will be welcomed by the industry and help to save jobs in East Yorkshire and across the country”.
Knight Calls for ‘VAT Review’ on Tourism
East Yorkshire MP Sir Greg Knight is calling on the Government to consider cutting the rate of VAT to 5% on tourist attractions and accommodation providers to help the domestic tourism industry bounce back from the COVID-19 crisis.
Sir Greg says: “The tourism and hospitality sector have been hardest hit by the shutdown and will be one of the last sectors of the economy to be permitted to reopen. Accordingly, I have asked the Chancellor to consider cutting the applicable VAT rate in his next budget, which would give a boost to tourism in the UK and encourage people to take holidays in places like Bridlington and the East Riding, rather than spending their money abroad.
Sir Greg said: “Some within the tourism industry are currently getting help from the government’s furlough scheme but this will not go on forever”.
“As the lockdown eases the industry will need targeted support to help it bounce back and there could be few better ways of incentivising Brits to take their holidays in the UK than by cutting the VAT applicable, to make them cheaper”.
“Many people are grateful for the range of government measures in place to help businesses through this crisis but I am now calling for some targeted assistance for the tourism sector”.