VAT cut 'lifeline' for Blackpool tourism

Support for the hospitality sector including a cut in VAT has been described as a ‘lifeline’ for Blackpool businesses battling to survive post-lockdown.
The VAT cut will boost Blackpool's attractionsThe VAT cut will boost Blackpool's attractions
The VAT cut will boost Blackpool's attractions

Hotels, restaurants and attractions in the resort will see the tax cut from 20 per cent to five per cent from July 15 until January 12 2021 as part of a package of measures unveiled by Chancellor Rishi Sunak.

Claire Smith, president of hoteliers group StayBlackpool, said they had been lobbying for years for a VAT cut to boost the industry.

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She said: “This will make a huge difference, including to those hotels which are not VAT registered, because it will make Blackpool a more affordable option.

Hoteliers leader Claire SmithHoteliers leader Claire Smith
Hoteliers leader Claire Smith

“We have so many attractions and restaurants here which will benefit, and I think they will pass it onto the customers.

“The bookings are coming in, but we haven’t been busy from the word go, so we really need this.”

Government support also includes the ‘Eat out to help out’ scheme, meaning meals eaten at participating businesses, Monday to Wednesday, will have 50 per cent off in August up to a maximum discount of £10 per head.

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Pauline Lai, who owns the Mandarin restaurant on Clifton Street, and the Wok Inn on Central Promenade, welcomed both measures.

She said: “This year is about survival, just getting through and being able to pay our staff and pay the rent and then start again next year. So the reduction in VAT is a lifeline.

“The half price deal means we can open Monday to Wednesday on top of the rest of the week, so we’re able to give our staff more hours of work.”

Kate Shane, head of Merlin attractions in Blackpool including the Tower, said until Wednesday’s announcement it felt like tourism had been forgotten by the government.

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She said: “We have been closed for longer, but in terms of the amount of money the tourism sector puts into the economy, and the amount of people we employ, it’s a significant sector.

“Yet we feel like we have been an after thought so it is positive there is now a focus on the tourism industry.”

Blackpool South MP Scott Benton described the measures as “the much-needed lifeline many businesses have been calling for.”

He added: “We should not underestimate how difficult recent months have been for many businesses. Now the virus is coming under control, we must turn our attention to creating and protecting jobs.”