Call made for lower VAT rates for coastal resorts

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News

A call has come for the level of VAT to be reduced for British coastal resorts such as Skegness.

At a town council meeting, Coun Mark Anderson said seaside destinations here were at a disadvantage compared with their counterparts in most parts of Europe where rates were five per cent compared with 20 per cent in the UK.

“Many of our businesses only have a short 10-week trading slot,” he argued.

“That puts them under a huge squeeze which will become even tighter when Living Wage measures come into force.”

Coun Steve Kirk agreed in principle but said there were too many potential anomalies in the proposal.

He asked how it could be explained to a caravan manufacture in Hull, say, that it should pay a higher VAT rate than a competitor in Ingoldmells.

He continued: “Unless we can come up with something cast iron, this idea will be thrown straight out if it ever gets to Parliament.”

On Wednesday, it was agreed that the proposal should be subject to a fuller debate as an agenda item at a future meeting of the council’s direction and strategy committee.