Holiday let tax repeal will boost Isles tourist industry
June 23, 2010 1:45 PM
Originally published by Scottish Liberal Democrats
Originally published by Scottish Liberal Democrats
The abandonment of Labour tax plans that would have hit the tourism industry in Orkney and Shetland will come as a welcome boost to local self-catering accommodation operators according to Isles MP Alistair Carmichael.
In the budget yesterday, the Chancellor of the Exchequer announced the scrapping of an increase in the tax payable on furnished holiday lettings (FHLs) first suggested in 2009. Industry experts had warned that the tax hike could have led to more than 4,500 job losses across the UK.
Alistair Carmichael MP: Orkney & Shetland
Before the general election, Mr Carmichael surveyed people in the Northern Isles who would have been affected by the tax increase. Responses revealed that significantly more than half of those self-catering accommodation businesses who employ staff were planning to reconsider their position in light of the additional costs.
Commenting, Mr Carmichael said:
'At the end of the last Parliament, I worked with colleagues to ensure that Labour could not force through this tax increase before the general election. In areas such as the Northern Isles where tourism is an important part of the local economy, it is clear that Labour's planned tax hike would have hit hard and put additional pressure on jobs.
'Almost 75% of those who responded to my survey on this issue before the election thought that the tax rise would have a significant and negative impact on their business. The decision to scrap the FHL tax rules will provide the tourism industry in the Northern Isles with a real lift.
'The fact that the coalition Government has kept Labour's tax increase off the agenda despite the difficult economic circumstance underlines our commitment to boosting growth. This budget was always going to be challenging but despite the difficult circumstances it was important that we took the actions required to get the economy back on its feet.
'It is the private sector that will play the key role in securing the economic recovery and the measures announced yesterday will make it easier for businesses to create the jobs the UK needs.'
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