§ Mr. SandersTo ask the Secretary of State for Culture, Media and Sport if she will make representations to the Chancellor to undertake a review of value added tax levels on hotel accommodation. [147250]
§ Mr. CabornDCMS has no plans at present to make representations to the Chancellor to review the rate of VAT on hotel accommodation, but we will continue to monitor the position carefully in consultation with the tourism and hospitality industry. Inconsidering the rate of VAT for hotels, the Government has to consider a wide range of issues such as the rate paid by other industries and the impact on revenue to the Exchequer, both in the short and longer term. The Government's aim is to maintain a tax system that provides the best overall environment for business, but it does keep the system under continual review.