---

Finance Bill

My hon. Friend again makes a valid point. To benefit from the temporary change in VAT, people would have to buy products that were so expensive many of them may not even have been made in the UK. That is a lesson that the Government have learnt, so it will be interesting to see what changes to VAT they propose next. I suspect that VAT may not stop at 17.5 per cent. but head a bit further north, considering the signs of the times. I would like to talk about how the Bill affects the tourism industry, which is the portfolio that I follow. I make no apologies for raising the issue. Tourism is Britain's fifth biggest industry and it is important to the UK. We are the sixth most visited place in the world. In an economic downturn, tourism is the one industry that is faring well and that could actually make more money. Unfortunately, it is doing well in spite of the Government, rather than because of them. In the lead-up to the Olympics, which is our one chance really to promote British tourism, the tourism budget is being cut, which is a scandal. I would like to react on record to the comments made by Michael Savage, who is a DJ and political commentator in the United States. In reaction to being denied entry to this country, he told his audience of 10 million people not to visit the UK. That is an absolute scandal. Let me tell his listeners: ignore the DJ and come to the UK. Enjoy the holiday, enjoy our exchange rate and understand that he is talking out of his backside. Tourism is called the hidden giant of the economy—it is the fifth biggest industry, and it seems to be hidden from Parliament as well. For every £1 that we spend abroad, £25 is brought into our economy. I understand that the Minister hosted an event at the Treasury not too long ago, and if I can catch his eye—[Interruption.] There we go. I hope that he will acknowledge the importance of tourism and the fact that Governments of all colours could do more. I would like to underline several points about taxation in the Bill. The taxation of bingo is dealt with in clause 20. What input did the Department for Culture, Media and Sport have into the change in policy? VAT has gone, for which the industry has been calling for some time, as have we. There was a system of double taxation that was unique to bingo. The industry was hit by gross profits tax and VAT, but when the industry gets what it wants and VAT suddenly disappears, it is hit by an increase in gross profits tax, from 15 to 22 per cent. The Government have given with one hand and taken away with the other. The consequence of that is an increase in taxation of about 46 per cent. That may be a cunning way to make money, but the Government do not fully understand the consequences that it will have for our communities. Some 8.5 million people play bingo every year. Many of them are old ladies, and for many the bingo night is their one night out in the week. One third of all bingo companies' locations are now under threat and many are closing every month. If we take bingo away from the community, we deny those people their ability to get out of the house, meet people and do something that they love doing. The consequence of raising money on the one hand is a detrimental impact on the community on the other.