A renewed drive to cut VAT for tourism businesses has been launched by the MP for Brighton Pavilion – and is being backed by The Argus.

Caroline Lucas is leading the push in Parliament for a cut in VAT from 20% to 5%.

An estimated 14% of the city works in the tourism sector.

Ms Lucas, who signed an early day motion in Parliament calling for VAT on hotels and attractions to be cut to drive investment and create jobs, warned: “Families are really struggling and they deserve a break.

“Brighton and Hove has some of the best visitor attractions in the country. “But the fact the UK is one of the few European countries that doesn’t have a reduced rate of tax on tourism puts us at a major disadvantage. “Cutting VAT on tourism would make a real difference to local businesses and help create jobs for people in Brighton and Hove.

“It would also make a day out for local families far more affordable, and provide another reason for people to take their holidays in the UK.

“Popular support for the campaign is growing, and I’m sure many more people in Brighton and Hove will want to get behind it.”

Earlier this year Brighton was revealed as the number one seaside town for overnight stays.

But it is feared this position could fall if the industry is not given a helping hand.

The UK is one of only four countries in the EU that has no reduced rate of VAT on the tourism industry.

A 2011 report by Deloitte and Touche found a 5% reduction in VAT would deliver £2.6 billion in extra revenue to the Treasury over a decade and create 80,000 jobs over two to three years.

The Argus, Brighton and Hove Chamber of Commerce and Tourism Alliance are all behind the renewed push.

Soozie Campbell, chairwoman of the tourism alliance, said: “This would make such a noticeable difference to prices that everyone would go out to celebrate. What better way to kick-start an economic recovery.”

Other firms and groups to back the campaign include Hotel du Vin, Blanch House, Moshimo and the Brighton and Hove Food and Drink Festival. The Treasury said there were no plans to cut VAT as it would lead to a tax shortfall.

  • For an in-depth report see next week’s Business Matters.