Labour’s holiday tax faces backlash from politicians and business leaders
SIR Keir Starmer has been accused of waging a war on fun via Labour’s holiday tax, reports BritPanorama.
The proposed visitor levy would add an extra £100 or more to a two-week break in the UK. Senior politicians have warned that the move will adversely impact struggling businesses and could deter families from taking vacations domestically.
Shadow Chancellor of the Duchy of Lancaster Alex Burghart characterized the proposal as “a tax on fun” that threatens to increase costs for families and drive tourists away from Britain’s seaside towns and city breaks.
During her Autumn Budget, Chancellor Rachel Reeves announced that regional mayors would have the authority to introduce visitor surcharges on accommodations including hotels, Airbnbs, and holiday lets. This has raised concerns among accommodation providers and local enterprises.
A collective of 200 accommodation providers, including notable brands like Butlin’s and Haven, denounced the proposal in a letter to the Government, arguing it would impose further financial strain on an industry already reeling from economic pressures. Reform MP Robert Jenrick also criticized the tax, asserting that “the last thing businesses and families need is yet another tax.”
A Treasury spokesperson responded to the criticism, stating, “We’re backing hotels and the high street with a £4.3 billion Budget package to cap big bill hikes. We will look at how hotels are valued for business rates to make sure the system is fair.”
UK Hospitality chief Kate Nicholls expressed additional concerns, noting, “Our guesthouses, B&Bs and hotels are already struggling with crippling business rates and this will hit hard working families, communities and make cost of living worse.”
The debate around Labour’s proposed holiday tax signifies a broader discussion about the balance between fiscal measures and their practical impact on citizens and businesses, highlighting the complexities of governance in an economically challenging environment.
