07/12/09 - Tourism Tax Changes will hit local Economy

The tourist industry in East Cleveland and North Yorkshire could be hit by a change in the tax laws for self-catering accommodation. Government measures to bring the UK in line with the rest of Europe will see an increase in the tax paid by owners which may see operators close and deter future investment.

It is thought that self catering breaks will see a revival as families hit by the recession pass on more expensive holidays abroad and choose to stay in the UK. Self catering accommodation in Saltburn and beyond is also popular amongst walkers attracted by the coastline and North Yorkshire Moors. Visitors also benefit the local economy as they buy all their food and groceries from local shops.

The 2009 budget contained measures that would mean self-catering businesses could no longer offset some of their annual costs and trading losses from their overall tax bill. Capital allowances and capital gains benefits will also go.

Conservative Parliamentary Candidate for Middlesbrough South & East Cleveland, Paul Bristow, stated:

"These changes will hit businesses in and around Saltburn and beyond. People come here for the beautiful coastline and moors and options such as self catering should be encouraged as it benefits local shops and businesses.

"Tax changes will mean owners will have less money to re-invest in facilities and some may even close altogether. I hope the Government consider the full implications of these proposals instead of just rushing ahead to keep us in line with the rest of Europe".