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Domestic Tourism

12 January 2021

Lead MP

Steve Double
St Austell and Newquay
Con

Responding Minister

Nigel Huddleston

Tags

TaxationEmploymentCulture, Media & SportLocal Government
Word Count: 4361
Other Contributors: 2

At a Glance

Steve Double raised concerns about domestic tourism in Westminster Hall. A government minister responded.

Key Requests to Government:

The Government should consider extending the business rates holiday for an additional year or at least six more months; extend the VAT cut on tourism and hospitality; and provide longer repayment terms for loans taken out during the pandemic. These measures will help businesses build up working capital to reopen and take advantage of pent-up demand in the coming summer.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

St Austell and Newquay
Opened the debate
The tourism sector in St Austell and Newquay, and across Cornwall, has been severely impacted by the global pandemic. Over 50% of jobs in Newquay are reliant on tourism, with Cornwall's economy relying on it for almost 25%. Despite efforts to adapt and innovate during the pandemic, businesses face significant challenges due to the 'three-winter scenario' where they did not earn usual revenues last summer and now confront another difficult winter. Businesses have also faced sudden changes like moving from tier 2 to tier 3 with little notice, impacting their operations and stock management.

Government Response

Nigel Huddleston
Government Response
It is a pleasure to serve under the chairmanship of Mr Robertson. I congratulate my hon. Friend the Member for St Austell and Newquay on securing this debate. The tourism industry contributes over £70 billion to the UK economy, employing directly 1.6 million people and indirectly more than 3 million. In response to the pandemic, the Government introduced various measures including furlough schemes, self-employed support, loan schemes, retail, hospitality and leisure grants, and VAT cuts. Despite these efforts, urban areas continue to struggle with low occupancy rates. The Chancellor announced one-off top-up grants worth up to £9,000 per property for businesses in November 2020 and a further £594 million discretionary fund to support impacted businesses. I encourage local authorities to be generous in awarding grants to sub-sectors that have not been able to access such funds previously. As the vaccination campaign progresses, the Government will continue to stand by the tourism sector through recovery, focusing on reopening businesses as soon as possible and stimulating demand through marketing campaigns. The Government is also committed to developing a sustainable, innovative, and data-driven tourism industry in the long term.
Assessment & feedback
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About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.