VAT cut extension needed to help Blackpool businesses

Hotels, restaurants and attractions in the resort, which have been either operating under restrictions or closed due to the Covid pandemic, have benefitted 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.

Coun Mark Smith, cabinet member for business, enterprise and job creation on Blackpool Council, has put forward a notice of motion to the next full meeting of the council on Wednesday February 10.

In his submission to town hall colleagues, he says many businesses are “still currently closed and struggling financially”.

When they are eventually allowed to reopen, he warns it is likely they “will be under some restrictions with limited trading” and will need some financial support going forward.

He adds the five per cent tourism VAT cut is “one of the best ways” to support these businesses during the current difficult times.

Councillors will be asked to support the motion and ask the council’s chief executive Neil Jack to write to the Chancellor Rishi Sunak requesting the extension of the current reduction in tourism VAT beyond March 31.

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