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Petition Extend the 5% reduced VAT rate to seasonal seaside amusement arcades.

The announcement of a 5% cut in VAT for tourism was a very welcome step, as is its recent extension. However, the measure does not apply to seasonal seaside amusement arcades. This is a serious oversight. They are in exactly the same boat as other tourism businesses that now attract the 5% rate.

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Seasonal seaside amusement arcades contribute around £1.6 billion to the UK economy each year. They employ close to 20000 people.

A reduced VAT rate would be a lifeline to many businesses both to stimulate demand and to protect cash in the businesses where it can be reinvested.

The cost to the Treasury will be comparatively small and would provide the boost that seasonal businesses desperately need. This would also bring the VAT rate into line with the 5% MGD rate payable in these venues.

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