Why I’m backing the Campaign to Cut Tourism VAT

What a reduction on tourism VAT would mean for coastal communities

Cleethorpes is an iconic seaside town on the Humber estuary where tourists come to enjoy our golden beaches and the famous Cleethorpes Pier.

As MP for Cleethorpes, I have taken a keen interest in the debate over reducing Tourism VAT and the benefits it would have on coastal communities. As a result, I’m backing calls from the Campaign to Cut Tourism VAT for the Government to reduce VAT on tourist accommodation and attractions from 20% to 5%. The hospitality industry is crucial in my area, with over 5,500 people in North East Lincolnshire alone working in the hospitality sector according to the British Hospitality Association.  

A reduction in Tourism VAT matters because it is estimated to create 123,000 jobs over a decade across the UK, giving a boost to coastal communities like Cleethorpes. Furthermore, for every £1 of tourism spend a further 70p is spent in the wider local economy. I believe that a reduction in Tourism VAT would greatly benefit both my constituents and people across the UK.

The recent joint call from the devolved tourism ministers and the Department for Culture, Media and Sport, asked HM Treasury to commission further research into a VAT cut for tourism businesses, to allow them to better compete with other European countries. 

I hope that this progress will continue and encourage the Treasury to take this opportunity to examine the benefits and consider the substantive evidence in favour of reducing tourism VAT across the UK. I will continue to work with the Campaign to achieve this.

From crazy golf to coastal trains, Cleethorpes is a great British destination with a lot to offer. As such, a VAT reduction would help us in Cleethorpes, and others across the UK, develop and invest for the future.