The Federation of Small Businesses (FSB) is calling on the Government to support smaller tourism firms this summer to help boost the economy.
Ahead of what the FSB considers to be a possible ‘staycation boom’, the group has released a list of recommendations with hopes it will bring back confidence in the tourism sector.
One of the most prominent points in the FSB’s ‘sunshine list’ is raising the VAT threshold from £85,000 to £100,000, with the group claiming the change could spark growth in the hospitality sector.
The FSB also recommends that the Government increases the small business rates relief threshold to £25,000 – removing 200,000 businesses from the register.
In the latest FSB small business index, data shows that business confidence is still relatively low, with businesses still facing challenges in the aftermath of the Covid-19 pandemic.
Of the tourism businesses asked, 77% said they carry some sort of debt, a sizable increase compared to the 59% pre-pandemic.
Martin McTague, national chair of the FSB, said:
“Stimulating our tourism and hospitality sectors with our ‘sunshine list’ this summer could make the world of difference, allowing hospitality firms to be the best they can possibly be.
“In turn, this will mean tourists can properly support our small business ecosystem, helping confidence leap into positive territory.”
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