Argyll and Bute businesses to benefit from VAT reduction

The UK Government‘s announcement of cutting VAT for the tourism and hospitality industry has been welcomed by Argyll and Bute Council.

VAT in the hospitality and tourism sectors on food, accommodation and attractions will be temporarily cut (15th July 2020 to 12th January 2021) from 20% to 5% as part of the Government’s three phased economic response to the COVID-19 crisis.

Tourism in Argyll and Bute plays a significant role supporting the local economy providing 15% of total employment and in 2019 contributed £510m to the wider Scottish economy (STEAM).

Councillor Alastair Redman, Policy Lead for Economic Growth said:

“The pandemic has had a major impact on our local economy with businesses and communities struggling with the effects lockdown has had on livelihoods. The temporary reduction in VAT is welcome and we hope as restrictions continue to ease, our hospitality and tourism sector can start to recover.

We have all done a fantastic job safeguarding each other since March.  Businesses are making considerable efforts to adapt and manage customer safety moving forward and it is now time to welcome visitors back safely.

Argyll and Bute has some of the most spectacular scenery in Scotland and we’re lucky we don’t have to travel too far to fully appreciate what a special place it is. We want to encourage visitors to return safely and help support our local businesses.”

More information about the temporary reduction in VAT can be found on the UK Government website.
https://www.gov.uk/government/publications/revenue-and-customs-brief-10-2020-temporary-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions/guidance-on-the-temporary-reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions