Bed tax would harm our ability to compete

27 April 2006
Bed tax would harm our ability to compete

I fully support Caterer‘s campaign to resist the Government's bed tax proposals. Caterer, the Tourism Alliance and the British Hospitality Association have clearly articulated the reasons for their opposition, and I agree that a bed tax would be unfair, inequitable and harmful.

The hospitality industry already faces unique challenges, some directly as a result of Government policy, placing us at a competitive disadvantage. A bed tax pushing tax on accommodation to nearly three times the European average would further erode our ability to compete in European and global markets.

We're already faced with circumstances in which less than 29% of our locally collected business rates are spent locally, the remainder disappearing into a central pool.

There's every indication that additional locally collected funds would disappear in a similar fashion, swelling central government coffers and further penalising our businesses.

Sign Caterer's bed tax petition >>

Tony Matharu
Managing director, Grange Hotels

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