Alyn Smith MP has called on the UK Chancellor Rishi Sunak to make permanent the current reduction in VAT, for the hospitality and tourism sectors.
A 5% VAT rate was introduced over the summer, in an effort to assist businesses hardest hit by coronavirus-related disruption. Currently this reduction is set to expire on 31 March 2021.
Mr Smith has written to the Chancellor, outlining the importance of businesses in these sectors to the wider economy, and noting the potential benefits to other areas of the economy from a bounceback within hospitality and tourism.
Alyn Smith MP said:
‘Hospitality and tourism are two internationally renowned sectors for both Stirling and Scotland, and both have been hit heavily by Covid-19. The Scottish Government and UK Treasury have put in place a series of measures and support schemes to assist affected businesses, but I believe this permanent VAT reduction could be a game-changer.
‘By alleviating some of the strain on this sector through targeted policy interventions such as what is proposed, we could nurture these important sectors back to full strength, retain skills, talent and jobs, and ensure Stirling remains a prime visitor destination in the years to come.’