Local MP Supports Holiday Cottages Group's call to review new tax on Rural Tourism (Montgomeryshire Liberal Democrats)

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Montgomeryshire Liberal Democrats <montlibdems@gmail.com>

Local MP Supports Holiday Cottages Group's call to review new tax on Rural Tourism

September 29, 2009 2:31 PM

Simon Law and Mr and Mrs Smith Lembit Opik MP visits local holiday home owner to discuss how planned changes to Furnished Holiday Lettings tax could hurt rural tourism

Newtown resident, Mr Smith and Property Director of letting agency Holiday Cottages Group, Simon Law met MP for Montgomeryshire, Lembit Opik, today to discuss the proposed repeal of Furnished Holiday Lettings (FHL) tax rules as outlined in this year's Budget. Welsh tourism represents 10 per cent of all UK tourism and self catering counts for 13 per cent of that spend. If just 10 per cent of self-catering cottage owners decide to cease trading as a result of the repeal of the FHL rules, over 200 jobs directly linked to Welsh Tourism could be lost.*

Holiday Cottages Group and industry group Tourism Alliance are concerned about the negative consequences the proposed changes could have on domestic tourism, in particular visitors to already hard-pressed rural communities.

Lembit said "I'm appalled to discover that, under the changes, owners of self-catering holiday accommodation will be landed with a greater a vital tax liability in one fell swoop. It will lead some to question the viability of their business. Holiday Cottages Group - and the sector - is aware of the tax pressures facing the Government. But it cannot be right to make changes that aren't logical, harm UK the holiday let sector, and could even reduce the tax return to the UK Government. These changes will disproportionately damage rural communities and hit individual owners of small letting businesses, not large absentee holiday home owners, which may have been the intention.

"I'm joining forces with all like minded groups and individuals to try and stop this monetary madness. Ministers just haven't thought this through. In the middle of a recession, the last thing we should be doing is driving our holiday let industry, and its customers, abroad. I would invite all holiday let operators to contact my office if they are willing to provide examples of how they add to the local economy, and the impact these changes could have if they go through. We have to fight this together, and we have to do it now."

Geoff Cowley, managing director of Holiday Cottages Group said: "This policy penalises the wrong people but could easily be amended to meet the government's objectives, without affecting the businesses which bring much needed tourism income to the countryside. We are working closely with local owners running successful small letting businesses in their rural communities as they will have their income affected by these proposed changes. We welcome the support of Lembit. We continue to make representations to HM Treasury to understand how Treasury estimates of the value and impact of this repeal have been put together. I am sure that given the opportunity, stakeholders can come up with alternatives which meet Mr Timms' financial requirements while better supporting local targets for tourism growth."

ENDS

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For further information contact Katie Bretherick or Gaby O'Grady on 0113 243 1117 or press@lucre.co.uk

Notes:

*Tourism Alliance Impact Briefing Paper, 2009

Holiday Cottages Group is the largest cottage holiday agency in the UK. It is responsible for booking holidays into more than 10,000 individually-owned properties throughout the country, accommodating approximately one million domestic holidaymakers each year.