VAT should be slashed to 5% to allow the hospitality industry to grow and wealth to increase from next year.

The British Hospitality Association (BHA) has called for rates to be reduced on restaurant meals, hotels and entry to attractions to boost jobs, wealth and hospitality.

From next month, the association will increase its efforts to encourage the Government to cut VAT in a bid to boost the industry and wider UK economy.

Progress is already being made with 100 hotels being opened in 2011 and 170 more set to open next year, the BHA's recent publication British Hospitality: Trends and Developments 2011 shows.

The BHA will tackle the issue with a coalition of partners including the Tourism Alliance, the British Association of Leisure Parks, Piers and Attractions, and the Federation of Small Businesses.

Positive steps are already being made with a series of discussions with HM Treasury officials underway, the BHA said.

Copyright Press Association 2011

Written by Richard Rapps