CBI plea for VAT on hotel bills to be slashed
The Confederation of British Industry (CBI) is lobbying the Government for a reduction in VAT from 17.5% to 5% on hotel and guesthouse accommodation in this year's Budget.
A spokeswoman for the CBI said a reduction in VAT was needed to increase competitiveness in the industry and create a level playing field in Europe.
According to the CBI, the UK is falling behind the rest of Europe in its growth in international tourism.
It added that tourism was high on the public agenda and a cut would help the sector to recover from the impacts of 11 September and the foot-and-mouth outbreak.
The CBI said it was "hopeful" that the reduction would be granted.