#tourist-tax

#tourist-tax

"Holidays are for relaxing, not taxing," the groups wrote in a letter to Chancellor Rachel Reeves. The businesses say people "would face an extra 100 or more for a two-week holiday" if a tax of 2 per person, per night was introduced. "It could force families to shorten trips, skip travel altogether or head overseas, spending their money elsewhere," they say.

The UK government's plans to give English mayors new powers to levy tourist taxes have been cautiously welcomed by culture sector professionals, who say that revenue raised from the new tax should go towards supporting arts and culture. Under the plans, which were announced yesterday, any new levy would apply to visitors at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses, says a statement from the Ministry of Housing, Communities and Local Government.

Mayors and other local leaders know their local history, local culture and the unique attributes of their places that draw visitors in. But they need powers and funding to enable them to harness England's potential and unlock growth through investment.

Research by the Association of International Retail (AIR) and Global Blue shows that spending by non-EU visitors to the UK is stuck at just 75 per cent of pre-pandemic levels since the Conservatives axed the VAT exemption in 2021. By contrast, continental Europe has seen record surges in tourist spending. Visitors' outlays are up 166 per cent in Spain, 159 per cent in France and 137 per cent in Italy compared with pre-Covid levels.

Angela Rayner has supported calls for a local 'tourist tax' on hotel stays, a proposal backed by several Labour metro mayors aimed at funding infrastructure.

Southwark's plans for a tourist tax could generate over 2 million in revenue, aimed at funding community safety measures and maintaining local attractions.