MP calls for VAT cut on tourism to help city
PORTSMOUTH South MP Mike Hancock has demanded the Prime Minister helps tourism across the city.
The Lib Dem has responded to David Cameron's speech supporting the tourist industry by calling for the government to reduce VAT on tourist attractions.
In a letter, also sent to Chancellor of the Exchequer George Osborne, Secretary of State for Business Vince Cable, and Minister for Tourism John Penrose, Mr Hancock explained a cut in VAT to five per cent on tourist attractions admission and accommodation would save up to 760m in social security payments, and increase income and corporation tax.
He argued it would add 440m to the industry, and create 26,000 new jobs.
He said: 'The PM asked why this country is lagging behind other European states on tourism. Our competitive disadvantage on VAT may be a considerable reason. This is one tax cut even the Chancellor should approve of, as research shows it would increase the government's tax take overall due to increased business. I hope the PM will now put his money where is mouth is and cut VAT on tourism. And I will be campaigning for the government to do that, and raising it in Parliament.'
According to figures compiled by Portsmouth City Council, tourism generates 500m in the city, and supports 10,000 jobs
Mr Hancock also asks the government to assist Portsmouth with extra cash for marketing and development as a tourist destination.
He wrote: 'There is a danger councils, after funding their statutory services will have to cut activities such as tourism marketing I urge the government to help councils market their areas as tourist attractions.'
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Weather for Portsmouth
Friday 25 May 2012
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