VAT rates throttle UK B&Bs
“Any ful kno” (as Nigel Molesworth used to say) that one of the most effective ways to get an economy out of a slump is to boost exports. One way to do this is to devalue your currency and make exports cheaper (exactly what Greece, Spain etc can’t do right now). But another way is to avoid taxing the hell out of the revenues generated by whatever it is you’re exporting – regardless of whether it’s a product, or, in the case of B&Bs, a service. High taxes on UK accommodation stifle the recovery, pure and simple.
Right now, bed and breakfast owners have a rare chance to help the country in terms of both exports and domestic consumption. Staying in a B&B – especially a rural one – is often one of the most delightful experiences for visitors to the UK: it gives them an invaluable chance to experience domestic life in another country without sacrificing anything in the way of comfort and modern amenities. B&Bs are also a crucial generator of jobs and GDP in the local economies that we so desperately need to stimulate (in order to stop the UK becoming, business-wise, “London… and everywhere else.”)
Continue reading →
