SEA LIFE Brighton is calling on the government to keep the tourism VAT reduction in place.
The attraction is putting pressure on the UK government to stick to the 12.5 per cent tax rate, over fears an increase to 20 per cent, due in April, could ruin businesses.
Merlin Entertainments, operator of Sea Life, warns that raising the tax rate so soon after the pandemic could mean serious implications for tourism.
Neil Harris, general manager at Sea Life Brighton, said: “Now more than ever, we recognise the need to give memorable and uplifting experiences to families who have been impacted over the past two years.
“We are very much of the view that if the VAT rate reverts to 20 per cent it will have a significant adverse impact on the tourism sector, at a time when it is finally starting to turn a corner.
“We firmly believe that keeping the current lower rate of VAT in place will help drive demand, create jobs, and give the tourism sector a strong boost on the road to a long-term, sustainable recovery.”
Merlin Entertainments employs around 10,000 people, as approximately 3.5 million people work directly in UK tourism, with a further 1.5 million employed in the supply chain.
The government originally cut the VAT rate to 5 per cent in July 2020 to help the tourism and hospitality industries, raising to 12.5 per cent in September 2020. The Chancellor, Rishi Sunak, said this rate is only temporary.
The Chancellor announces the government budget annually.
Neil and Merlin Entertainments say an increase to its pre-pandemic level could see 10 per cent of the trade’s businesses go under.
“As we continue to recover from the pandemic, our focus remains on making up for the significant losses incurred over the past two years,” added Neil.
“Although UK visitor attractions benefitted from domestic tourism during 2021, there continues to be a dearth of overseas visitors which is having a significant adverse impact on overall numbers and revenue for the sector as a whole.
“In addition, the recovery was significantly slowed over the winter period due to the rise of the Omicron variant and the Plan B restrictions. In light of this, we continue to support the collective view of our industry that a lower rate of VAT needs to remain in place for tourism.”
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