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# Lib Dems back tourism tax reduction
- URL: https://www.scenemag.co.uk/lib-dems-back-tourism-tax-reduction/
- Published: 2015-09-25T07:20:13.000Z
- Updated: 2015-09-24T10:29:39.000Z
- Description: Lib Dems have voted to reduce VAT on hotel rooms and visitor attractions from the current 20% to 5% at their national conference in Bournemouth. 25 out of 28 EU countries already apply a lower rate of VAT to these amenities and Lib Dems believe the UK tourist industry is at a significant disadvantag
- Author: Sarah Green
- Tags: Politics, Paul Chandler

## Lib Dems have voted to reduce VAT on hotel rooms and visitor attractions from the current 20% to 5% at their national conference in Bournemouth.

![Paul Chandler, Chairman Brighton and Hove Lib Dems](https://www.scenemag.co.uk/content/images/wp-content/uploads/2015/09/web-60091.jpg)

Paul Chandler, Chairman Brighton and Hove Lib Dems

**25 out of 28 EU countries** already apply a lower rate of VAT to these amenities and Lib Dems believe the UK tourist industry is at a significant disadvantage by not following them.

In 2011, Ireland reduced its tourism VAT rate to 9%, meaning the UK rate is currently more than double that of its nearest neighbours.

It is predicted that the policy would cost up to £1.5 billion in lost tax revenue, but the increase in tourist numbers and creation of jobs would boost economic activity sufficiently to make up 100% of the lost tax take by its third year, with a net surplus thereafter.

**Paul Chandler, Chairman of Brighton and Hove Lib Dems, said:** *‘This proposal makes economic sense and will be a particular advantage to Brighton and Hove with its many hotels and visitor attractions including our brand new i360.*

*“Hotels have suffered from the huge growth in DIY bed and breakfast accommodation promoted by websites like AirBnB – most of whose participants don’t pay any VAT. This will redress the balance a little.”*