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England's Mayors to Get Power to Impose Tourist Tax
Confirmed
In Short: Mayors in England will soon have the authority to introduce a tourist tax, aimed at boosting local services and public spaces.
Reform UK leader Nigel Farage has branded the proposed tax a "holiday tax," stating that his party's two mayors in Greater Lincolnshire and Hull and East Yorkshire "won't touch" the levy. Meanwhile, Labour's South Yorkshire mayor Oliver Coppard welcomed the move but emphasized that his mayoralty would consult industry leaders before implementing the charge.
The tourist tax, which will be a percentage of the cost of hotels, bed and breakfasts, and other types of accommodation, is expected to be uncapped. This means that local leaders could theoretically set the tax at any level they choose. However, the government argues that a percentage charge will protect budget holidays and expects mayors to be able to impose the levy by the end of the Parliament.
Allen Simpson, chief executive of an accommodation management company, warned that the tax could add about £100 to £120 on average to the cost of a family holiday in England. He expressed concerns that mayors might make use of the fact there is no upper limit for the levy, potentially burdening tourist resorts and budget holidaymakers.
In response to these concerns, the government has stated that mayors are unlikely to make the levy too costly in order to protect their local tourism industry. Most mayors are expected to set the tax at a few percent. However, some mayors, like John Chappell who runs five caravan parks in Skegness, Lincolnshire, have expressed caution, fearing that the tax could disproportionately affect budget holidaymakers already struggling with the cost of car travel.
The proposal also includes exemptions for emergency accommodation, homeless shelters, and registered Gypsy and Traveller sites used as primary residences. Additionally, mayors will be able to apply other local exemptions. The Housing, Communities and Local Government Secretary, Angela Rayner, is due to provide more details of the proposals at a meeting with mayors at No 10 later today.
What's confirmed
- Reform UK leader Nigel Farage has branded the proposed tax a "holiday tax," stating that his party's two mayors in Greater Lincolnshire and Hull and East Yorkshire "won't touch" the levy. Meanwhile, Labour's South Yorkshire mayor Oliver Coppard welcomed the move but emphasized that his mayoralty would consult industry leaders before implementing the charge.
- The tourist tax, which will be a percentage of the cost of hotels, bed and breakfasts, and other types of accommodation, is expected to be uncapped. This means that local leaders could theoretically set the tax at any level they choose. However, the government argues that a percentage charge will protect budget holidays and expects mayors to be able to impose the levy by the end of the Parliament.
- Allen Simpson, chief executive of an accommodation management company, warned that the tax could add about £100 to £120 on average to the cost of a family holiday in England. He expressed concerns that mayors might make use of the fact there is no upper limit for the levy, potentially burdening tourist resorts and budget holidaymakers.
- In response to these concerns, the government has stated that mayors are unlikely to make the levy too costly in order to protect their local tourism industry. Most mayors are expected to set the tax at a few percent. However, some mayors, like John Chappell who runs five caravan parks in Skegness, Lincolnshire, have expressed caution, fearing that the tax could disproportionately affect budget holidaymakers already struggling with the cost of car travel.
- The proposal also includes exemptions for emergency accommodation, homeless shelters, and registered Gypsy and Traveller sites used as primary residences. Additionally, mayors will be able to apply other local exemptions. The Housing, Communities and Local Government Secretary, Angela Rayner, is due to provide more details of the proposals at a meeting with mayors at No 10 later today.
What's still developing
- However, mayors will not be allowed to exempt whole localities within their regions from the tax, to avoid creating confusion for visitors and businesses.
- Mayor of London Sir Sadiq Khan called for the levy to come in sooner rather than later, adding it was right for the capital to have the same power as other global cities to use the charge.
- York, pictured, is one of the cities where the regional mayor plans to explore a tourist tax Mayors in England will be given the power to impose a new fee on visitors' overnight stays, in a move the government says will mean more money can be invested into local areas.
- "It'll help support the local services, public spaces and attractions that both residents and visitors rely on, with decisions taken by people who know their area best." Some mayors have backed the move, while others have expressed caution or signalled they will not bring it in.
- He said holidays in the UK are “already more expensive” than they appear because of higher VAT, even before the tourist tax.
- “What we’re talking about here is an open-ended power for mayors to set tourism taxes at any level they want,” Mr Simpson said.
- “Big cities may welcome these mayoral powers, but treating every destination and hospitality business the same will leave resorts like ours to shoulder the burden,” he said.