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Tourism Minister Urges Government to Cut VAT to Support Scotland’s Tourism and Hospitality Sector

  • Tourism Minister Richard Lochhead has written to the UK Government calling for a reduction in VAT to support Scotland’s tourism and hospitality sector.
  • Farms and crofts in Scotland attract over 1.5 million visitors annually through agritourism.
  • Lochhead describes the tourism and hospitality sector as vital to the economy, accounting for 8% of jobs and 9% of businesses.
  • He suggests that a reduced rate of VAT for the sector could boost business viability and stimulate demand.
  • The Deputy First Minister and Cabinet Secretary for Finance, Shona Robison, has also included this request in her pre-budget correspondence to the Chancellor.
  • The UK has one of the highest VAT rates for tourism in Europe, with some countries having rates as low as 9%.
  • Tourism businesses are estimated to add £3.4bn in gross value added to the economy.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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