MPs call for more tourism industry financial aid in Budget

Friday, 01 Mar, 2021 0

A group of cross-party MPs have urged the Chancellor to provide meaningful financial aid to hospitality and tourism operators.

A total of 83 MPs from the All-Party Parliamentary Group (APPG) for Hospitality and Tourism have endorsed a letter to the Chancellor calling for a number of measures ahead on this week’s Budget.

APPG members called for a VAT cut extension to 5% on food and drinks for an additional year, ‘to ensure that it applies across the broad hospitality sector, to stimulate economic activity.’

It is asking for a business rates holiday for another fiscal year and HMRC tax deferrals to allow more time for businesses to recover.

"For hospitality, the UK’s third-largest employer, the importance of this Budget is clear. After a year of restrictions, sub-economic trade, closures and significant financial losses, it is essential that the Government offers more support for hospitality businesses while they recover from this unprecedented crisis," UKHospitality said.

Chancellor Rishi Sunak has hinted the job retention scheme, which covers up to 80% of wages, would continue beyond the planned expiry date.

Sunak also indicated there would be VAT tax breaks for the hospitality and tourism sector.

Co-vice chair Alison Thewliss said: "Financial support at the Budget is now a must. The Chancellor needs to act positively and extend the VAT cut and the rates holiday to our fantastic hospitality and tourism sector, which can help to regrow our battered economies.”

TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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