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Local MP Joins Forces with Holiday Cottages Group to Support Rural Tourism

July 28, 2009 9:45 AM
Alan beith at The Lee

Alan Beith is fighting against extra taxes on tourist businesses to help Northumberland beat the recession.

Berwick-Upon-Tweed MP, Alan Beith has given his full support to a new parliamentary motion, calling on the Government to review plans to repeal the Furnished Holiday Lettings (FHL) tax rules outlined in this year's Budget and consult with both tourism and rural stakeholders.

Alan Beith said

"This is no time to be putting big extra tax burdens on local tourist facilities because tourism is one of the key elements in fighting the recession here in Northumberland."

The early day motion was tabled following a campaign led by cottage holiday agency, Holiday Cottages Group (HCG) and the Tourism Alliance. They are concerned about the negative consequences the proposed changes will have on domestic tourism, in particular already hard-pressed rural and seaside communities.

Under the changes, owners of self-catering holiday accommodation will face a greater tax liability which could lead them to question the viability of their business. If just 10 per cent decide to cease trading as a result of the repeal of the FHL rules, UK tourism expenditure could decrease by almost £110 million each year and over 2,400 jobs could be lost.*

Geoff Cowley, managing director of Holiday Cottages Group said: "This policy is ill thought out and penalises the wrong people. It's not the large absentee second home owners, who may have been the Government's target, that will be affected but the individual owners of successful small letting businesses and rural communities whose income is largely dependent on them. We therefore welcome Alan Beith's support."

For further information on the Early Day Motion and a full list of the MPs who have signed it visit: http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=38928&SESSION=899

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