Carmichael supports VAT reduction for tourism sector

Alistair Carmichael, MP for the Northern Isles, has joined colleagues in supporting a Parliamentary motion calling for a VAT cut for the tourism.

The cross-party motion calls on the Chancellor to reduce VAT to 5 per cent for the tourism sector, in line with the European average. This is something Mr. Carmichael has campaigned in favour of for some time.

“There is evidence that a cut in VAT for the tourism industry would help the sector grow, and could actually increase the amount raised by the Chancellor in tax,” he explained.

“I have called for the Treasury to do their own analysis, this would allow them to support the many local communities, which depend on this industry. It is disappointing that they are yet to do so.”

According to Mr Carmichael, this motion has the potential to show the strength of feeling among MPs, and will increase pressure on the Government to listen to the evidence, and to support one of the UK’s most important industries.

“These tax changes could help thousands of small local businesses in the Northern Isles,” he continued.

“It is important that we ensure this industry remains competitive with other European countries, many of whom have already followed similar policies. I hope that this time, the Government will finally listen.”