Tourism

Lord Gordon of Strathblane Excerpts

Monday 8th February 2016 Lords Chamber

[The Earl of Courtown]

My Lords, no. I will write to my noble friend.

[Lord Gordon of Strathblane (Lab)]

My Lords, would the Minister acknowledge, a great success story though British tourism is, that it is important that we do not price ourselves out of the market? There is a grave danger of us doing that because we are one of only four countries in Europe that charges VAT at the full rate on hotels and other tourism products. Will he ask his colleagues in the Treasury to model the effect of a major reduction in VAT on tourism? It may be that the lump sum that comes to the Treasury would be greater as a result of the growth of tourism.

[The Earl of Courtown]

The noble Lord makes a very good point. I know from other Questions that I have answered on similar subjects that my right honourable friend the Chancellor always keeps these matters under review.