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Nearly 20% of Brits would reconsider staycation plans due to potential holiday tax increase

May 4, 2026
2 mins read
Nearly 20% of Brits would reconsider staycation plans due to potential holiday tax increase

Poll reveals opposition to proposed holiday tax among Brits

Nearly one in five Brits would reconsider booking a staycation due to a potential increase in cost from a proposed “holiday tax,” according to recent polling, reports BritPanorama.

The survey indicates a strong backlash against plans for a overnight stay levy, with 57 percent of respondents indicating they would not book a break if the cost increased by £50. Furthermore, 85 percent stated they would decline a domestic stay in England if the tax added £100 to their holiday expenses.

The hospitality industry has expressed concern that an overnight levy would deter visitors from utilizing local accommodations such as hotels and campsites. Business leaders emphasize the potential negative impact on an already struggling sector, with over 200 executives from companies including Butlin’s, Haven, and Parkdean Resorts urging Chancellor Rachel Reeves to abandon the proposal.

The polling commissioned by UKHospitality further reveals that voters are ten times more likely to cast their ballot against an MP who supports the additional cost. Allen Simpson, head of UKHospitality, remarked that the polling results serve as a “wake-up call” for MPs considering backing the tax, as it could adversely affect families that the government aims to support.

Business groups have warned that such a tax would impede investments and jobs in the sector while complicating existing regulations. Proposals for mayoral authorities to impose a £2 per person per night fee could result in over £100 being added to the price of a two-week family holiday.

Polling indicates that 73 percent of respondents would either forgo a holiday in England or reduce their spending while on break if such a levy is enacted. Notably, 39 percent expressed a preference for holidaying abroad, a sentiment that heightened to 48 percent among higher-income households.

Statements from industry leaders underline the potential financial strains of a holiday tax. Jon Hendry Pickup, CEO of Butlin’s, explained that for many families, the tax might prevent them from taking a holiday altogether. Stephen Cassidy from Hilton UK & Ireland added that the proposed tax represents an unwanted cost and a significant risk during a period of financial sensitivity.

Despite industry and public pushback, government representatives argue that funds generated from the tax would enhance local services and stimulate economic growth. UKHospitality’s polling, conducted in partnership with Butlin’s, Haven, and Hilton between March 24 and April 20, highlights critical political ramifications, with Labour voters visibly resistant to MPs supporting the tax. Shadow Chancellor Sir Mel Stride emphasized that the tax would negatively impact families and seaside towns already facing challenges, stating, “At a time when every penny matters, my message to Rachel Reeves is clear: Hands off our holidays.”

A government spokesperson responded that the survey results are speculative, insisting that the final structure of the proposed visitor levy remains undecided yet aimed at bettering local economies through tourism revenue.

The debate surrounding the holiday tax underscores broader concerns about the financial viability of domestic tourism in the UK and the implications of additional charges during a period of economic uncertainty.

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