Cross party support in Blackpool for VAT cut extension

There was cross party support for the motion put forward by Labour councillor Mark Smith, cabinet member for business, enterprise and job creation.

He told a meeting of the full council: “Unfortunately most of the Blackpool businesses who could have benefited from this reduction have been closed for 165 days out of the 259 days this could have been available up to March 31.

“That’s nearly half the time they could have had this financial benefit, that they have been closed.”

He added he would like to see the Government extend the cut for another year.

Conservative councillor Don Clapham, who seconded the motion, said “most people didn’t get the benefit of the reduction” which is “critical to Blackpool’s tourism industry”.

He said: “It’s imperative VAT stays at five per cent well beyond March 31. This will allow our businesses to survive, and then thrive to pre-Covid levels.”

Hotels, restaurants and attractions are among businesses in Blackpool which could have benefited from the government cutting the tax from 20 per cent to five per cent since last July.

The Chancellor has previously extended the end date of the reduced rate from December 2020 to the end of March 2021, but now calls are being made to extend the reduction further.

The council’s chief executive Neil Jack will now write to Chancellor Rishi Sunak requesting the extension of the current reduction in tourism VAT beyond March 31.

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