Call to cut VAT on tourism to lift economy

MPS FROM across Yorkshire are calling on the Government to cut VAT on tourism to boost the region’s economy in the wake of the coronavirus pandemic.

The hit to tourism as a result of the lockdown has been felt especially hard in Yorkshire.

Research last year showed tourism in the region was worth £9bn and that 8.5 per cent of all jobs were reliant on the sector. But more than 600,000 people in Yorkshire have been furloughed due to the coronavirus crisis, with 64 per cent of businesses operating at 50 per cent capacity and 9.5 per cent of people claiming out-of-work benefits in May.

The call from MPs and peers on the Yorkshire and Northern Lincolnshire All-Party Parliamentary Group (APPG) comes after a previous demand for a Cabinet Minister to be given responsibility for working with the Yorkshire Leaders’ Board to develop a clear and coherent plan for the region’s recovery.

Communities Secretary Robert Jenrick is co-chairing a London Transition Board with the Mayor of London and the APPG believes a similar body should be provided for Yorkshire.

Now they have further called for a cut in VAT for the tourist industry to five per cent.

The co-chairs of the group, Huddersfield MP Barry Sheerman and Thirsk and Malton MP Kevin Hollinrake, said: “With the country beginning to move out of strict lockdown measures it is vital that everything possible is done to get the Yorkshire and Northern Lincolnshire economy back firing on all cylinders.

“Our plans contribute to a roadmap that would help to achieve this.

“We call on the Government to work with local authorities, businesses and others in the region.”