Borel calls on UK Treasury for VAT cuts to boost leisure sector

Borel calls on UK Treasury for VAT cuts to boost leisure sector

Friday, September 28, 2012 Totally Gaming

French businessman Jacques Borel met with UK Treasury officials to discuss bump-starting the nation's hospitality sector with a cut in VAT. Borel, who has successfully lobbied to reduce VAT for hospitality across Europe, discussed the case for lower VAT, saying that it would help to create jobs and boost the hospitality industry.

Borel said: “I had an excellent meeting with the Treasury. I explained that across Europe countries like France, Belgium, Germany, France, Sweden and Finland have reduced VAT and seen employment creation results that have been better than anticipated. In France, I forecast a reduction in VAT would create 105,000 jobs. In fact, 225,000 jobs were created.

“I explained that we have estimated a reduction in VAT to five per cent for the hospitality sector in the UK would create between 290,000 and 670,000 jobs. Of the savings for companies, we estimate 60 per cent would benefit customers in the form of reduced prices, 20 per cent would be spent on investment and improvements, 15% would be passed on to employees and five per cent would go to increased profits.

“The priority today is unemployment and reducing it. I was asked why VAT should be reduced for the hospitality sector. I made the point that VAT should be reduced for other industries where jobs can be created quickly – the construction industry, for example. I argued that the government must re-invest in the form of reduced VAT in those industries where they will get fast results. Building a rail system to ensure a faster train service between London and Edinburgh might be a sensible five-to-ten year investment, but a reduction in VAT within the hospitality industry will create many jobs in a matter of months.”



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