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.”)
A torrent of stats from theBandBer.com today, all about the impact of social media and mobile on the accommodation sector. The dominant theme is that big hotel chains are investing more and more heavily in these areas. We all know that the invaluable thing about B&Bs and guest houses is the way they offer travellers a personal, human-scale experience which the chains can’t match – while frequently providing the same modern amenities at a much more reasonable price. But where the likes of Four Seasons go, other properties, of whatever size/type, tend to follow, sooner or later (think online booking and publishing reviews on websites.)
