HC Deb 28 July 1955 vol 544 cc1339-40
35. Mr. Janner

asked the Chancellor of the Exchequer whether he is aware that travel organisations, including air and shipping companies and agents, are concerned that overseas visitors to Britain are being discouraged by the lack of suitable hotels; and whether as an encouragement to more and better hotels he will consider waiving the Purchase Tax on equipment which constitutes a considerable burden.

Mr. H. Brooke

My right hon. Friend would not feel justified in relieving hotels of this tax, in isolation from other users of taxable goods.

Mr. Janner

Would the right hon. Gentleman and the Chancellor consider, with other members of the Government, what is to be done about this very difficult position? For instance, is the right hon. Gentleman aware that when the Royal Automobile Club was asked what country hotels were available within thirty or forty miles of Leicester, and not too far from the London road, the answer from the Club was that it was regretted that it had no details of country hotels in the required area? Does the right hon. Gentleman know that that situation prevails in other parts of the country? Will he try to meet the situation, which is extremely important to the tourist trade?

Mr. Brooke

I recognise the difficulties of those who are trying to run hotels in these days, but there is no possible solution along the lines of a special exemption from Purchase Tax.