The £46bn hospitality industry has made a reduction in tourism VAT its number-one priority for the next government, according to research by Beacon.
The hospitality buying company surveyed a selection of businesses in the sector between 1st and 16th March 2015 and report that 34% singled out a VAT reduction as the policy they most want to see implemented following the general election on 7th May.
Other findings include strong support for a reduction on tax on alcohol (22%). The survey also highlighted a need for more support in plugging the skills gap and employing apprentices (25%).
Paul Connelly, director of operations at Beacon, commented: “A reduction in tourism VAT, which would see it brought into line with competitor destinations within the European Union, would allow hospitality businesses to lower prices and increase investment in struggling areas. Furthermore, research by Deloitte/Tourism Respect found that such a reduction would contribute an extra £2.6bn to HM Treasury over ten years and create 80,000 jobs.”