POLL: Would you pay Rachel Reeves’ holiday tax on UK break? | UK | News

A new tourism tax was announced in the King’s Speech last week, which could see holidaymakers claim tax on stays across the country. Overnight Visitor Tax Regional Mayors will be given the power to impose the fees, which will be added to stays in hotels, hostels and holiday rentals.

If the bill is passed later this year, it could add up to £140 towards a family of five’s two-week stay. The money raised from the tax will then be reinvested into the local community, including infrastructure and public services. However, there are concerns the plan will further impact the already struggling sector in the UK, with a rental boss warning the Labor Government is taxing tourism as “non-existent”.

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The Overnight Visitor Levy was first announced by Chancellor Rachel Reeves last November. A consultation has been launched on what the new tax would look like as the government argues local mayors and leaders feel left behind in raising revenue.

Mayor of London Saqiq Khan previously said: “Giving mayors the power to increase tourist tax is great news for London. The extra funding will directly support London’s economy and help strengthen our reputation as a global tourism and business centre.”

West Yorkshire Mayor Tracy Brabin added: “Mayors have made a strong case for introducing this levy as a first step towards financial devolution and we are pleased the government has listened.

“By asking visitors to pay a small fee for overnight stays, we will be able to invest more in making our areas better places to visit, encouraging tourism and growth, unlocking opportunities and helping our businesses thrive. This is another vote of confidence in devolution and shows that the government supports mayors to deliver on our ambitions.”

Meanwhile, Edinbugh’s new “Visitor Tax” will come into force from July 24, making the city the first in the UK to charge for overnight stays under official law. The tax will be charged at a rate of 5% on the total cost of the night’s stay paid and will be capped for the first five consecutive nights of stay.

Wales will impose the same tax until 2027; Cities in England, including Manchester and Liverpool, have introduced a small charge on your overnight stays due to loopholes using the Accommodation Business Improvement District (ABID).

In Europe, Amsterdam currently imposes a 12.5% ​​tax on the cost of hotel rooms. Likewise, in Paris there is a mandatory tax for a five-star hotel, with a surcharge of €10.73 per person per night.

However, there are concerns in the UK that the tax could collapse the tourism industry. Kate Allen, who runs Finest Stays in South Devon, described it as “just another hidden tax”, while Peter Robinson, a tourism operator in Cornwall, said the tax would inevitably “increase the cost of holidays for struggling families”.