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VAT: Tourism

Treasury written question – answered on 24th January 2011.

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Photo of Susan Elan Jones Susan Elan Jones Labour, Clwyd South

To ask the Chancellor of the Exchequer what assessment he has made of the effects on the tourism industry of the increase in the rate of value added tax.

Photo of David Gauke David Gauke The Exchequer Secretary

No specific assessment has been made of the economic impact of the VAT rate increase on the tourism industry. The impact assessment published with the Budget in June 2010 provides information on the compliance costs to business overall of the VAT rate increase, but not at sector level.

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