Chancellor announces massive VAT cut for tourism sector

A “suite of measures” have been announced, designed to help the tourism recover from the impact of Covid-19

bucket and spade on beach

Chancellor of the Exchequer Rishi Sunak has today announced he will be cutting VAT on tourism businesses from 20% to 5% as part of a suite of measures designed to help sectors recover from Covid-19.

Responding to this, CLA President Mark Bridgeman said:

“After intense lobbying from the Country Land and Business Association, we’re delighted that the Government has cut VAT to help our tourism sector fight back from a devastating start to the year.

“Until now VAT on tourism businesses has been much higher than in other comparable countries* putting domestic tourism businesses at a competitive disadvantage to holiday providers overseas.  This welcome change from Government means more people will be able to afford to enjoy a holiday in the Great British countryside whilst also helping to revive rural economies across the country.

“The next challenge will be to ensure we are able to stimulate demand not just in the short term, but through the less popular winter months too”.

The CLA called for a VAT reduction when it published its paper  ‘COVID-19: Restarting the economy in rural areas’.

News shared by Michael on behalf of the Country Land and Business Association. Ed

*VAT on comparable businesses in France is 10%, Spain 10% and Greece 13%.

Image: imcountingufoz under CC BY 2.0

Wednesday, 8th July, 2020 2:12pm



Filed under: Government, Island-wide, Isle of Wight News, Top story, Tourism

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4 Comments on "Chancellor announces massive VAT cut for tourism sector"

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Jenny Smart

So will the tourism industry be passing these savings to the public by reducing their costs by 15%?

I very much doubt it.

As soon as travel restrictions are lifted, the public will revert back to seeking better holiday value abroad.


Not entirely sure that overseas holidays will ever revert to the low prices people have been used to. In addition, there’s a widespread nervousness about travelling by air which will linger for a long while, restrictions or not. Much better to support our home industries.


Do you really think the ‘meal deal’ is going to turnaround the tourism and hospitality economy in ripoff Britain?

Many people have lost their jobs, and are in fear of losing there jobs. Do they have the money, or inclination, to splash the cash, and eat out?

Now the GovernMent is going to pay half the eat out costs up to £10, Monday to Wednesday in August and the Restaurateur then claims the ‘money back from the GovernMent. I have no doubt that having ‘produced their PAPERS’ (provided details of all in the group ) to get into the Restaurant those details will be REQUIRED in the information the restaurant provide to claim their… Read more »