Originally Posted by
IAN-UK
It's an odd intiative - effectively giving cash to hotels, but not doing much to boost demand/consumption. Unless of course tpunters are fooled into thinking VAT reduction= price reduction
It depends on the breakdown of personal vs. business travel for accommodation at the moment.
Companies and the self-employed will end up paying more VAT to the Exchequer because they'll have less VAT paid (on business travel) to offset.