An extension to the cut in VAT for tourism and hospitality has been welcomed for local Borders businesses.
Rishi Sunak, the Chancellor of the Exchequer, announced the extension as part of his 2021 budget.
It means that VAT will remain at 5% for hospitality and leisure businesses until the end of September 2021, at which point it will increase to 12.5% and will remain at that level until April 2022. The usual VAT rate is 20%.
The extension will mean £4.7 billion less in VAT needing to be paid by businesses. It will also help protect 150,000 hospitality and tourism businesses who employ around 2.4m people across the UK.
With these sectors being one of the hardest hit by the pandemic, by-election candidate Jenny Linehan has welcomed the positive effect this will have on tourism businesses in Melrose and surrounding areas.
Leaderdale and Melrose council by-election candidate, Jenny Linehan said:
“With international travel likely to be heavily restricted this summer, it will be vital for local tourism and hospitality businesses to get all the support they can.
“The market for attracting domestic tourists will be fierce. But with so much to do and see in the Borders, particularly around Melrose and Lauder, I know that we have the pulling power to bring day-trippers and those on longer stays.
“This VAT cut will go some way in supporting them in getting back to full strength.
“If elected on Thursday, one of my priorities will be helping local businesses to recover from the economic shock of Covid-19. Attracting tourists to come and spend money in our town is an important part of that.”
John Lamont MP said:
“This VAT cut extension is part of a significant package of measures to support jobs and businesses in the Borders.
“With no firm opening date on the horizon yet for tourism, I know many people will also be glad to see the extension of the various employment support schemes, helping to protect jobs and livelihoods in the industry.”
