‘The country’s leading voice for small businesses has called for temporary cuts to VAT for the construction and tourism industry after confidence in the economy among its members slumped. The Federation of Small Businesses said the government should reduce VAT – now at 20% – to 5% on tourism and construction to stimulate growth. John Walker, national chairman of the FSB said: “The government’s growth strategy is just not working.”
‘The Treasury said in response: “Reduced VAT rates of the kind suggested would make a significant impact on revenue. Any claim that a boost to foreign tourism or construction would outweigh these effects would need to be looked at very carefully indeed.”’
‘The country’s leading voice for small businesses has called for temporary cuts to VAT for the construction and tourism industry after confidence in the economy among its members slumped. The Federation of Small Businesses said the government should reduce VAT – now at 20% – to 5% on tourism and construction to stimulate growth. John Walker, national chairman of the FSB said: “The government’s growth strategy is just not working.”
‘The Treasury said in response: “Reduced VAT rates of the kind suggested would make a significant impact on revenue. Any claim that a boost to foreign tourism or construction would outweigh these effects would need to be looked at very carefully indeed.”’
