Extending the VAT reduction isn't just about having fun again — it's about jobs

FAMILIES and the economy would both enjoy a much-needed boost if the VAT reduction for struggling industries is extended for another year.

The danger is that, just as we come into spring and people want to get out, leisure, tourism and hospitality firms are forced to put prices up.

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It is about fun days out again for people who need it.

We need to make people happier, quicker.

If you take the reduction away — VAT was slashed from 20 per cent to five per cent last year as support for sectors until March 31 — it is going to take a lot longer to get the economy going.

We can bounce back quicker under the right conditions.

Raising VAT would be the wrong thing to do at the wrong time.


But it is not only about having fun again, it is about jobs that go with it.

Tourism is incredibly important to the UK while hospitality is our third biggest industry.

An extension to the VAT break would cost up to £1billion but eventually generate more than that in tax receipts.

 

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