Families may have to pay more than £100 extra to go on holiday in England under a controversial tourist tax announced by Labour.
Those booking stays in hotels, guest houses or Airbnbs will be hit by the ‘levy on overnight trips’ in many of the country’s popular destinations including London, Manchester and York.
The rate is expected to be set at £2 a night, but if charged per person as in other tourist hotspots worldwide it would add £122 to the cost of a two-week break for a family of four.
The announcement yesterday comes just two months after former tourism minister Chris Bryant assured the Commons: ‘We have no plans to introduce a tourism tax. Many people in the sector have made the point to me that they feel taxed enough.’
Elected mayors will get to decide whether or not to impose the tax and most came out in favour as they will get to use the money raised to improve their areas.
But Mayor of Tees Valley Ben Houchen vowed: ‘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.’
Chairman of UKHospitality Kate Nicholls said: ‘This is a tax on the British seaside holiday, the city break, those visiting family and friends.
‘This is a shocking U-turn that will only make life more expensive for working people. It could cost the public up to £518million in additional tax when they travel in the UK and have knock-on impacts for the wider hospitality sector.’
Those booking stays in hotels, guest houses or Airbnbs will be hit by the ‘levy on overnight trips’ in many of the country’s popular destinations including London, Manchester and York
She said that if England’s levy is set at the same level as that being introduced in Edinburgh next summer – 5 per cent of the cost of a room for each of the first five nights – it would make the tax higher than that paid in Paris, Barcelona or Rome.
A consultation ending in February will decide the figure and whether it will be charged per person or per room. A sliding scale could be brought in so that pricier hotel stays have a higher fee.
Conservative MP Sir James Cleverly said: ‘Hotels and B&Bs already pay VAT at 20 per cent, corporation tax, business rates and National Insurance.
‘This is therefore yet another Labour tax on British holidays, pushing up costs for hard-pressed families, and yet another kick to British hospitality.’
Mayor of London Sadiq Khan, who could receive as much as £200million a year from the proposal, said: ‘Giving Mayors the powers to raise a tourist levy is great news for London.
‘The extra funding will directly support London’s economy and help cement our reputation as a global tourism and business destination.’
