Economic Update

Part of the debate – in the House of Commons at 1:03 pm on 8th July 2020.

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Photo of Alistair Carmichael Alistair Carmichael Liberal Democrat Chief Whip, Liberal Democrat Spokesperson (Exiting the European Union), Liberal Democrat Spokesperson (Foreign and Commonwealth Affairs) 1:03 pm, 8th July 2020

Having campaigned for many years for a 5% rate of VAT for the visitor economy, may I welcome that part of the Chancellor’s announcement today? May I ask him, though, please not to close the door on the idea of extending that or even making it permanent? He will have the best possible data now to test against previous studies that have shown that that rate could actually bring a better return of revenue for the Treasury. I fear that, even for my constituency where we have a highly seasonal visitor economy, many of the businesses will not benefit from it, because they are not intending to reopen again until next spring.