Scrap upcoming ‘tourist tax’, hundreds of hospitality bosses tell Reeves
More than 200 hospitality and leisure bosses have called on the government not to impose a tax on people holidaying in the UK.
The country’s mayors and other local leaders could introduce a “modest” tourism tax, also known as a visitor tax, in a bid to boost the region’s revenue, ministers have said.
British cities such as Manchester and Liverpool have already introduced a similar measure, but this is an arrangement with local businesses rather than a local authority tax.
In last year’s autumn budget the chancellor confirmed that English regional mayors would have full power to impose a visitor tax on overnight stays in hotels, Airbnbs and holiday homes.
But hundreds of bosses at Britain’s leading hospitality firms, including Butlin’s, Hilton and Travelodge, have called on Chancellor Rachel Reeves to cancel the plans.
“Holidays are for relaxing, not paying taxes,” they write, arguing that a visitor tax would negatively impact families, put jobs at risk and drain local communities of money.
The government’s plans are designed to provide local mayors with more funding to invest in local infrastructure and transport. They mirror similar devolved moves in Scotland and Wales; Edinburgh, the capital of Scotland, is preparing to impose a five percent ‘visitor tax’ in July.
Mayors in London and Liverpool are already among those welcoming the plans and have said they will impose taxes.
In the letter, industry bosses said: “This ‘Holiday Tax’ will hit families hardest, put jobs at risk, drain local businesses and communities of money and undermine the Government’s growth agenda.
“For millions of hard-working families, a UK holiday is a chance to relax and spend quality time together.
“For many people, this tax will make their holidays unaffordable, meaning families will shorten trips, give up holidays altogether, reduce spending on pubs, restaurants, events, leisure and local attractions, or travel abroad to spend their money elsewhere and create jobs.”
Hospitality operators also used the letter to reiterate some of their concerns about new pressures facing the sector: “rising business rates, energy costs, tax bills and employment costs.”
They added: “[The UK hospitality sector] currently contributes billions of pounds in taxes through business rates, employment taxes and VAT; At 20%, this is twice the rate of competitors in France, Italy, Spain or Portugal.
“Don’t turn a Great British holiday into a luxury. Abolish the holiday tax and take back the families, workers and businesses that make Britain worth visiting.”
A Government spokesman said: “Tourists travel from near and far to visit England’s wonderful cities and regions.
“We are empowering our mayors to take advantage of this and allocate more money to local priorities so they can continue to stimulate growth and investment in the economy by supporting thriving communities.
“We expect the new fees to be modest and in line with other countries, and mayors need to consider the right level for their area.”
