Elizabeth Adams, Lib Dem candidate for Stratford-on-Avon at this year’s general election, has welcomed the new Liberal Democrat Policy to reduce VAT on tourism accommodation and attractions.
Under EU rules, countries are able to reduce VAT on this industry to boost jobs and local economies. Currently the UK does not take advantage of this, with much a much higher and less competitive rate of VAT than the majority of its EU neighbours.
Elizabeth Adams, Stratford-on-Avon Liberal Democrat candidate for Parliament said, “Around 17% of our local economy is from the tourism industry and many local job depend on this directly and indirectly. The UK doesn’t take advantage of many of the positive benefits from being in Europe and this is one area where we could send a message that Britain is open for business.
“The 20% VAT rate means that guests’ bills for overnight stays are disproportionately higher once tax is added and often means the difference between spend and no spend. Income from tourism goes directly back into the local economy and plays a crucial part in preserving the local heritage sites of South Warwickshire.
“The policy has been fully costed and will generate income by three years. This would be a real investment in our towns and villages. By reducing VAT for attractions, it will make setting up new businesses in this industry more viable and help to rejuvenate many derelict areas in shopping centres and on high streets, where retail businesses are moving to online stores.”
The tourist industry fully advocate this policy and the Liberal Democrats are now the first party to back it.