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‘Madness’ and ‘Desperation’: Hospitality Venues Voice Fears over Plans for New Tourist Tax
The levy could fund transport and public spaces, while businesses warn it may raise costs for overnight stays by up to 5%, officials said.
On September 10, the Government announced new powers allowing regional mayors in England to introduce an overnight visitor levy on guests staying in commercial accommodation. Individual regions will decide whether to use this optional charge.
East Midlands Mayor Claire Ward supports the levy, arguing it provides dedicated funding for the region's visitor economy. The East Midlands Combined County Authority aims to grow this economy by at least £1bn by 2035.
Paul Chambers of the Beaumond Cross Inn called the proposal "all about a money grab," warning of "unintended consequences" for the hospitality sector. Chambers argued the industry is already "overtaxed."
Pablo Petit-Breuilh, owner of The Lions Bed and Breakfast, calculated that a £160 room could incur an additional £8 charge at a 5% levy rate. He fears this would discourage families booking multiple rooms.
Newark MP Robert Jenrick criticized the proposal as a "holiday tax" amid cost-of-living pressures. Jenrick objected to the levy's introduction in the East Midlands, stating that Reform UK opposes the measure.
The British government will allow mayors and regional leaders in England to introduce a tax on overnight stays for tourists at their discretion. The so-called visitor levy will not be mandatory across the board and its amount will not be centrally set. However, it is expected that it should not exceed five percent of the accommodation price.