'Chancellor has missed an opportunity', says BHA

"In his Commons speech, the Chancellor of the Exchequer said that his Budget would 'build on the strengths of the British economy and its people, speed the recovery, providing jobs and spreading prosperity'. It is curious, therefore, that despite its size and importance, tourism didn't get a mention in the speech. It was an opportunity missed. Gordon Brown frequently insists that Britain must invest its way out of the economy – yet the Budget has done little to encourage this in tourism. In 2007, the government abolished the Hotel Buildings Allowance and reduced other capital allowance (the main allowance was increased in this Budget – for one year only – to 40%). Yet investment in tourism facilities – hotels, restaurants, attractions – is essentially long-term. Frustratingly, the Government is investing heavily in green and hi-tech industries to pull the economy out of the recession (investments that take many years to produce a return) rather than investing in tourism which can produce a near instant return. If government wants to encourage more new investment, it needs to restore the Hotel Buildings Allowance and the long-term cuts in capital allowances, stop the imposition of additional employment costs on businesses (particularly in business rates, employment and NI) and stanch the endless stream of new regulations."