Chris Webb

Chris Webb

Labour — Blackpool South

Speaking in the House of Commons on 12 November 2026

Debate

Hospitality Sector VAT: Local Economies, Employment and Growth

Contribution

The Great British summer savings scheme, which temporarily reduced VAT on attractions this summer, is a good case study of the potential impact of policy changes on local economies, employment and tourism. The scheme recognised that targeted VAT reductions can support both consumers and businesses, as can free bus travel. Take the award-winning Blackpool pleasure beach in my constituency. During the pandemic, when VAT was cut to 5%, the park’s turnover rose, and it recorded an exceptional profit of £10.5 million—the biggest in years. As a consequence, it paid £1.9 million more in tax to His Majesty’s Revenue and Customs. Over the summer, businesses in my constituency were saved because of the summer savings scheme. What assessments has the Minister’s Department made of the impact of rising costs on hospitality businesses, business investment, employment and opportunities for young people? What assessment has been made of the potential impact on local economic growth of reducing hospitality VAT? I look forward to hearing more from colleagues and to the Minister’s response.

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