Rachel Reeves’ staycation tax soars as UK tourists face £300 bills | Politics | News

Some of Britain’s best-loved tourist attractions are reportedly facing taxes of up to £300. Trips to places like the Peak District, Scarborough, Whitby, Cromer, Sandbanks and Bamburgh Castle could cost more, as 10 of England’s 14 regional mayors are believed to want or are considering introducing an overnight visitor tax. The government said in its last Budget that mayors and potentially other local leaders would be given the option, subject to consultation, to introduce a visitor tax on the overnight stay of visitors in their area.

Officials added: “This will fund further investment into local growth, including the visitor economy. The government is consulting on the design of the tax.” However, this policy faced backlash. But mayors in Yorkshire, the north east, the West Country and parts of the Midlands are said to support the move. Data shows that these areas account for approximately 40% of domestic tourism.

Local authorities in Bath and North East Somerset, Bournemouth, Oxford City and North Norfolk and other local authorities are also considering introducing the tax. Telegram reported.

Labor MP Chris Webb suggested after the King’s speech on 13 May that a visitor tax could damage the economy in seaside resorts such as Blackpool.

The Blackpool South representative said he sold kiss-me-quick hats in his youth, adding that the tourism sector “supports pubs, cafes, restaurants, theatres, attractions and transport links”.

He said: “The industry’s concerns need to be taken seriously before the Overnight Visitor Tax Bill comes into force because the additional costs and additional burden will hit them the hardest.

“And if we are serious about supporting British tourism, I repeat my call for the Chancellor to reduce VAT on accommodation and tourism in line with other European countries.”

UKHospitality claimed the policy was “deeply unpopular” and warned it could add £100 to the cost of a two-week family holiday.

Allen Simpson, the company’s chief executive, said: “The government has confirmed it will legislate to make family holidays more expensive during the cost of living crisis.

“This is a shocking U-turn after he told both the House of Commons and UKHospitality that he would not impose a holiday tax.

“The facts are simple: holiday tax will increase the cost of accommodation for Britons, hit low-income families hardest, lose Treasury money and cost 33,000 jobs.

“The holiday tax is deeply unpopular and also economically devastating. Twice as many people oppose it as support it, and voters are 10 times more likely to punish an MP who supports a holiday tax than those who back them.”

A government spokesman said: “The visitor tax will give Mayors more power to raise money and invest it into their priorities, such as improving holiday destinations and growing the local economy to put more money in people’s pockets.

“The final design of the visitor tax has not been decided and it will ultimately be up to mayors to decide whether to use it.”