Dozens of Conservative MPs are backing calls for VAT on hotels and tourist attractions to be cut in a bid to halt Ukip’s rise in seaside towns.
The Cut Tourism VAT campaign, supported by 87 MPs, has called for VAT to be lowered from 20% to 5% for hotels and attractions, bringing the UK into line with other EU countries. It adds that while the Treasury would lose tax revenue, the change would add £4bn to the UK GDP.
MPs argue that the tax is stifling seaside economies, which is allowing a platform for Ukip.
Financial Times, 2
