MP calls for VAT reduction on tourism to continue

MP Alistair Carmichael has urged the UK government to continue into next year with a reduced rate of VAT for tourism.

Speaking in Parliament yesterday, Mr Carmichael spoke of the need for measures to support the tourism industry and to ensure its survival post-Covid.

He called the reduced rate a “welcome move”, but said that it would need to be extended beyond January for the sector to fully recover.

“The case for a continuation of the VAT reduction period is strong,” he said.

He had spoken to hoteliers in Orkney and Shetland that were concerned that the VAT rate would increase at a time when tourists would be at a minimum in the winter.

“The thing that came across to me loud and clear was their frustration at having no control over so many of the things they need to rebuild their businesses and get money back into our community.”