Campaigner Borel 'still confident' of VAT cut despite Government rejection

Speaking to the PMA's​ sister title M&C Report​, Borel said he’s “confident” that a VAT cut for the entire industry will be secured next April.

During a debate in Parliament on plans to cut VAT to 5% on tourism businesses and accommodation, Gauke said the Government has “no plans” for such a move.

He also pointed out that reducing VAT to 5% for catering services, as requested by Borel’s VAT Club, could cost the Exchequer between £9bn and £10bn per year.

Time and effort​

Asked if he thought this meant a VAT cut was less likely, Borel said: “Not at all.” He pointed out that last year David Cameron put the figure at c£12bn in answer to a question in Parliament.

“David Gauke has certainly made a lot of progress but he’s not yet there. It’s going to take time and effort.”

Borel said the VAT Club has visited 25 MPs in the past two months, with only one, a Conservative, not supporting the campaign. He expects to have met 75 by Easter who will back plans to reduce VAT for “the whole hospitality sector”, including meals out, alcoholic drinks, tourism businesses and accommodation.

“To fight only for tourism and amusement parks is insufficient,” he stated.

Fight​

“I’m still confident of being able to obtain the tax cut for the whole industry in April next year. But for that you need to fight for all, and evidently there will be time when you have to give and take. But we are not yet there.”

Borel said his meetings with MPs would previously last about 10 minutes but now last between 35 minutes and 1 hour 15 minutes. “They now are ready,” he said. “We are now close to elections, next year. They know the creation of jobs is the key point to be elected.”

Borel said 58 companies have so far backed his campaign.

He said 35 MPs in total took part in the debate at Westminster Hall, a number speaking in favour of a VAT cut.