Angus MP, Mike Weir, has backed a national campaign calling for the Chancellor to cut VAT on tourism by 15 per cent.
The reduction outlined in the campaign would see VAT reduced from 20 per cent to five per cent, which would give a £3.8 million boost to the local economy.
The Cut Tourism VAT Campaign is run by a coalition of hotels, self-catering, caravan sites, B&Bs and visitor attractions is calling on the Government to boost the economy in the upcoming Budget by cutting VAT on tourism, as 25 of the 28 countries in the European Union already do.
Reducing VAT on tourism to five percent would not only make the UK more competitive with other destinations within Europe, but would also increase the affordability and attractiveness of regional tourism hotspots and generate more investment for local businesses.
Based on independent research by Deloitte and Oxford Economics, the Cut Tourism VAT Campaign estimates that a 15 point reduction in VAT would mean extra jobs and a £3.8m economic boost for Angus.
Nationally, cutting VAT would bring a £4 billion boost to the UK economy and create 120,000 jobs.
Graham Wason, who is the Chairman of Cut Tourism VAT, said: “International competition for tourism is increasing while the UK’s share of the global tourism market is declining, and I am delighted that Mike Weir MP is supporting our call for an urgent cut in tourism VAT which would boost the tourism industry and the wider economy in Angus.”
Mr Weir commented: “A reduction of VAT on tourism from 20 per cent to five per cent would make a huge difference to Angus resulting in extra jobs and an additional £3.8m to the local economy.
“That’s why I’m backing the campaign to Cut Tourism VAT and I’m asking the Chancellor of the Exchequer to give tourism in Scotland a well-deserved boost.”