New tourist tax proposed for England’s cities
Visitors to English cities and regions may soon face a new tourist tax designed to fund local projects, reports BritPanorama.
Mayors will be granted the authority to impose a “modest” charge on guests staying in hotels, B&Bs, guest houses, and holiday rentals.
This initiative has garnered support from regional leaders, including London Mayor Sir Sadiq Khan, Greater Manchester Mayor Andy Burnham, and West of England Mayor Helen Godwin.
However, the hospitality sector has voiced concerns, branding the tax as “damaging”.
Local Government Secretary Steve Reed stated, “Tourists travel from near and far to visit England’s brilliant cities and regions. We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”
Officials have noted that implementing a tourist tax would align English cities with global tourism hotspots like New York, Paris, and Milan, which already have similar levies in place.
The Ministry of Housing, Communities and Local Government indicated that research suggests “reasonable” fees have a “minimal” impact on visitor numbers. Funds raised are expected to be directed towards transport, infrastructure, and the broader visitor economy to attract more tourists.
Helen Godwin commented that the proceeds from an overnight visitor levy could “support and enhance the [tourism] sector’s businesses and workers”. She added, “These new powers are a real vote of confidence in our region taking more control of our future.”
Sir Sadiq Khan emphasised the potential economic benefits, saying, “The extra funding will directly support London’s economy and help cement our reputation as a global tourism and business destination.”
Andy Burnham highlighted the economic significance of tourism in Greater Manchester, asserting, “The money they spend contributes about £9 billion annually to our economy, supporting over 100,000 jobs.” He noted that the levy would enable enhancements in infrastructure and services for visitors.
Meanwhile, Steve Rotheram, Mayor of the Liverpool City Region, expressed long-standing support for such measures, stating, “Cities like Barcelona and Paris raise tens of millions each year through similar schemes — money that goes straight back into improving the visitor experience.”
In contrast, Lord Houchen, the Conservative Tees Valley mayor, declared, “I won’t be using this power. There will be no tourist tax in Teesside, Darlington and Hartlepool for as long as I’m mayor. Thanks, but no thanks.”
Kate Nicholls, chairwoman of industry body UKHospitality, cautioned that the “damaging holiday tax” could force the public to shoulder costs up to £518 million, warning, “Make no mistake – this cost will be passed directly on to consumers, drive inflation and undermine the Government’s aim to reduce the cost of living.”
This proposal comes ahead of Wednesday’s Budget, with consultations running until February 18 to address concerns, including whether there should be a cap on the tax scale.
Westminster City Council leader Adam Hug urged that tax revenues should benefit local councils instead of being solely retained by mayors. “It is essential that the Government ensures mayors split the revenue with the local councils in their area to support these services, without which economic growth will suffer,” he stated.
Editorial Note: The introduction of a tourist tax in England represents a noteworthy shift in the approach to funding local priorities through tourism. While proponents argue for its potential to enhance infrastructure and support local economies, significant pushback from the hospitality sector highlights the delicate balance between taxation and maintaining an attractive environment for visitors. Understanding these dynamics will be crucial as the government navigates this new policy landscape.
