BHA letter urges members to help in VAT cut campaign

The British Hospitality Association (BHA) has issued a letter to its members, urging them to help campaign for a reduction in VAT for the hospitality industry to 5%.

The letter comes after it was revealed that the association would be ramping up its efforts on securing a VAT reduction, following discussions with Treasury officials.

The BHA is also canvassing members' opinions on what a VAT reduction would mean to them.

The letter reads:

Important: VAT

Dear Member,

Next year will be a significant year for the UK hospitality and tourism sector. The Olympic Games and Diamond Jubilee celebration will focus international attention on Britain, presenting a one-off opportunity to make the case to Government for measures which will boost growth in our sector.

We believe a reduction in the rate of VAT to 5% for hotel accommodation, entry to attractions and on meals out of home is the best way Government can help us grow. From January we will be stepping up our efforts to make the case to Government focusing on the lasting legacy a VAT cut would bring through new jobs and increased international competitiveness.

We have already brought together a strong coalition of partners led by the BHA, including the British Association of Leisure Parks, Piers & Attractions, the Federation of Small Business and the Tourism Alliance.

We have the economic evidence which shows that a reduction in would create thousands of new jobs and drive investment in the UK.

And we have begun a series of positive discussion with HM Treasury officials who are interested to hear more about the contribution our industry could make to the economy.

But we will need your help and support to make this campaign a success.

As a first step, we are eager to hear your views on what a reduced VAT rate would mean to you. We have set up a short online survey here which should take no more than five minutes to complete www.surveymonkey.com/s/YP9YDGM

Your responses will be critical to establishing the first phase of the campaign and I would urge you to respond. The survey will close on Thursday 22 December.

Please find here a short briefing paper which provides a summary of our work to date and an overview of our plans for the New Year. As the campaign moves forward we will keep you regularly updated on our efforts and the steps you can take to support our work.

If you would like to register your support for the campaign please e-mail us at vatcampaign@bha.org.uk.

Together, we have a powerful message for Government. Your support will be critical to the success of this campaign.

We will be holding a webinar on Wednesday 14 December at 10.30am with the participation of the campaign chairman, Graham Wason, to whom you may put questions, ideas and suggestions about the campaign.

To take part in the webinar, contact Frances Sturt at BHA (frances.sturt@bha,org.uk) - 020 7404 7744 - or check on the BHA website.

Yours sincerely,

Ufi Ibrahim
Chief Executive
British Hospitality Association

Graham Wason
Chairman
Tourism & VAT: Making Britain Competitive

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By Neil Gerrard

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