The Cavendish London has taken the decision to get behind the British Hospitality Association’s (BHA) Campaign to reduce the rate of VAT in the industry from 20% to 5%, and will be the first hotel in the UK to simulate the proposed lower rate of VAT on its room rates during the summer months.
The industry’s on-going campaign to reduce the rate of hospitality VAT will support long-term and sustainable growth for the UK economy. Independent research shows that a VAT cut on visitor accommodation and attractions would have three massive benefits: it would drive £4 billion of new revenue into the UK, create 80,000 jobs, and would not cost the Government anything.
Promoting the impact
General Manager for The Cavendish London, Neil Braude said: “By offering a reduced room rate to simulate less VAT, we are providing our customers with a more affordable stay. In turn, we aim to promote the impact an increase in business and leisure stays will have on the economy, including the creation of new jobs. Ultimately we hope the Government gets behind this campaign.”
Competing effectively within the EU
Ufi Ibrahim, Chief Executive of the BHA said, “The UK continues to lag behind our European counterparts and the current VAT rate at 20 per cent undermines the UK tourism’s ability to compete effectively within the EU hospitality market.
“The CutTourismVAT campaign is focused on asking the Government to reduce the rate of VAT charged on tourism to 5%. It will see government and industry working together to promote British hospitality and tourism as a vibrant industry to work in, power the industry’s potential to drive economic vitality and jobs, and celebrate the 2.7 million Hospitality ambassadors in Britain”.
“We are delighted that The Cavendish London has taking the lead with an initiative to cut its room rates to simulate 5% VAT.”
The Cavendish London: VAT stay terms and conditions
The VAT promotional rate is valid for stays at The Cavendish London from 25.7.13 – 08.09.13. The room rate is £152.15 (incl. VAT and breakfast) with full pre-payment made at time of booking. To redeem the rate, quote “5% VAT” at time of booking.
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