KEETCH JOINS FORCES WITH HOLIDAY COTTAGES GROUP TO SUPPORT RURAL TOURISM

10.05.18am BST (GMT +0100) Tue 28th Jul 2009

• Paul Keetch MP signs parliamentary motion calling for formal consultation on planned Furnished Holiday Lettings tax changes

• Policy could lead to region's visitor spend decreasing by £574 million

Hereford MP, Paul Keetch, 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.

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 Paul'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