Tourist Tax Plans Could Push Up Cost of UK Staycations – NATIONAL NEWS
Families heading to some of Britain’s most popular holiday destinations could soon be forced to pay hundreds of pounds extra under controversial new tourist tax plans being backed by Labour mayors and councils.
The proposed “overnight visitor levy” would allow regional mayors and local authorities to charge holidaymakers extra for staying in hotels, campsites, B&Bs and holiday lets, with the money helping to fund local services.
Tourist hotspots across the country could eventually fall under the scheme as the government pushes ahead with wider devolution plans for councils and regional authorities.
Ministers are considering two possible models for the levy. One option would charge visitors a flat nightly fee, while another could see councils impose a percentage charge based on the cost of accommodation.
If ministers adopted a percentage-based model similar to Amsterdam’s 12.5 per cent tourist tax, the average family staycation according to GoCompare costing around £2,765 could rise by an additional £345. Even lower rates similar to those proposed in Edinburgh and Aberdeen would still add between £138 and £193 to the cost of a family holiday.
Industry leaders have warned the plans risk damaging Britain’s tourism economy at a time when many hospitality businesses are already struggling with rising costs, inflation and staffing pressures.
Research carried out by Oxford Economics for UK Hospitality estimated that a widespread tourist levy could lead to the loss of 33,000 jobs nationwide and reduce GDP by £2.2 billion through lower visitor spending.
Tourism currently contributes around five per cent of the UK economy and supports approximately 2.4 million jobs, with domestic tourism remaining especially important for seaside towns and rural communities.
Critics have accused the government of targeting ordinary families with another stealth tax during a continuing cost-of-living squeeze.
Several senior Labour figures have already welcomed the proposals, including London mayor Sadiq Khan and Greater Manchester mayor Andy Burnham. Burnham has reportedly lobbied ministers to press ahead with the levy.
According to responses gathered from mayoral authorities across England, support for the plans is divided. Labour-led regions including Liverpool, the North East, South Yorkshire, West Yorkshire and the West of England are understood to support the proposals. Areas including Cambridgeshire and Peterborough, North Yorkshire and York, and the East Midlands are said to be considering the plans.
Meanwhile, Reform’s Greater Lincolnshire mayor Andrea Jenkyns and Conservative Tees Valley mayor Ben Houchen have both ruled out introducing the levy in their regions.
The West Midlands Combined Authority, led by Labour mayor Richard Parker, said it had not yet decided what position it would take on the proposed visitor tax.
Opposition politicians have criticised the plans, warning they could place additional pressure on working families and hospitality businesses already facing rising costs.
Under the proposed legislation, councils could also eventually gain powers to charge higher rates on certain types of accommodation, including second homes and holiday lets, in areas where housing pressures are particularly severe.
A government spokesman said the levy would give mayors “more power to raise money and invest it in their priorities”, adding that the final structure of the tax has not yet been decided and local authorities would choose whether to implement it.
The government is expected to publish further details of the scheme later this year.
What do you think? Is the proposed visitor levy a necessary boost for cash-strapped councils, or will it simply drive more families away from UK staycations and towards holidays abroad? Let us know what you think in the comments.
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