Nationalists launch drive for VAT cut to boost golf tourism

Enterprise minister Fergus Ewing has suggested that Scotland should follow the Republic of Ireland’s example and cut VAT rates for the tourism and golf services industry.

Mr Ewing said he had raised the matter with the UK minister for tourism, John Penrose, in an answer to a parliamentary question tabled by Graeme Dey, the SNP MSP for Angus South.

Mr Dey’s constituency contains many famous golf courses, including the championship links at Carnoustie and Panmure, Barry.

Yesterday, Mr Dey said London needed to address an 11 per cent disparity in VAT rates between Ireland and Scotland for tourists.

“At the moment our hands are tied. Because of the UK government’s reluctance to follow Ireland’s lead, our tourism is affected,” he said.

“Scotland’s tourism and golf sectors are at a competitive disadvantage with Ireland just now because they have reduced their VAT rates and we have not.

“Scotland should be allowed the same opportunity as Ireland and let our tourism and golf tourism in particular reap the benefits of a reduction in VAT.”

In the European Union, 23 countries have a reduced rate of VAT for their tourism and hospitality sectors. Mr Dey added: “All of these countries are benefiting from a VAT cut – why can’t Scotland do the same?

“The UK government must act soon or any benefits in the economy we are gaining could be lost.”

Mr Dey’s question asked what recent discussions the Scottish Government had had with the UK government on VAT reduction pointing out that Ireland had temporarily reduced tourism and golf VAT from 21 per cent to 13.5 per cent.

In his parliamentary question, Mr Dey asked Mr Ewing: “The minister will be aware that the Irish government has introduced a temporary reduction in the rate of VAT pertaining to the tourism and golf services sector.

“Has the Scottish Government raised with London the possibility of its addressing an 11 per cent disparity in VAT rates between Ireland and Scotland, which is placing our tourism and golf sectors at a competitive disadvantage?”

Mr Ewing told Mr Dey that, unlike Scotland, Ireland has power over VAT.

Mr Ewing said: “I advise Graeme Dey that I met the UK minister for tourism and heritage just last week and urged him to consider the measures that have been taken in Ireland.

“I further inform the member that 23 countries in the European Union currently have a reduced rate of VAT for their tourism and hospitality sectors.

“I welcome the approach that Ireland has taken, but it has a government that has the powers to act.”