Tourism minister John Penrose dismisses BISL calls for tax cuts in leisure sector

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Penrose: "There is very little money for one or two of the tax suggestions" in new BISL report on leisure sector

Tourism minister John Penrose has said he agrees with the “direction” and “many details” of a new series of recommendations to help the leisure sector, but warned that there’s “very little money” to reduce taxation.

It comes as a leading leisure entrepreneur added his own voice to calls for the sector to be represented more strongly by the Government.

In its new report, Business in Sport and Leisure (BISL) said a cabinet minister, preferably the Culture Secretary, should be made responsible for championing the growth of the UK’s leisure industry, which it said is being hit by a rising tax and regulatory burden that will grow from £3.2bn in 2010 to £3.9bn by 2014.

The BISL report also urges action on VAT, including reducing the rate to 5% for visitor attractions and examining plans to cut VAT for meals at pubs and restaurants.

Speaking at the launch of the report, Penrose said: “There is a huge amount to agree with here, there is a huge amount where we are aligned, there is a huge amount where we can cooperate and work together.

“I am afraid there is very little money for one or two of the tax suggestions. But, nonetheless, directionally and in many points of detail, we agree thoroughly and want to make sure we push this forward.”

Simon Johnson, chief executive of BISL, was encouraged by Penrose's endorsement of the report.

"The Minister was very supportive," said Johnson. "We said in our report we wanted to start a new era of collaboration between the leisure industry and the Government and so for me the most rewarding thing was that he said he was well up for that."

On the proposal to make a cabinet minister responsible for the leisure industry, Keith Knowles, managing director of Beds & Bars, said: “I think it’s a great idea but they need to have sufficient clout to do things, and not be some junior minister with no clout or influence.”

Meanwhile, Ziya Akguneyli, managing director of Practical Choice Partnership, a new support firm for small and medium-sized leisure businesses, believes the industry needs a Department of Tourism and Hospitality to give it a stronger focus in Government.

Practical Choice Partnership puts independent pubs, hotels and restaurants in touch with best suppliers and sector support in areas such as utilities, finance and accounting, food and beverages, IT and consultancy.

Akguneyli said: “I have been extremely disappointed at how little help our sector receives, and Practical Choice Partnership is an initiative of mine to do something positive for the leisure industry.

“I call on Government to do more. And I urge them to create a new Department of Tourism. But on its track record to date, I fear that leisure and hospitality businesses will continue to be ignored and will continue to under-perform.