US EditionRayner demands tourist tax in clash with Reeves
ENGLAND, UNITED KINGDOM, JUL 21 – Angela Rayner backs local powers for councils to levy tourist taxes amid Labour tensions, with potential to raise £209 million for cash-strapped services, opposed by Chancellor Reeves.
- Deputy Prime Minister Angela Rayner demanded a tourism tax in England amid clashes with Chancellor Rachel Reeves, who blocked the move as of 2025.
- The push for the tax aimed to help local councils offset tourism impacts but faced resistance due to concerns over business revenues and recent wage increases.
- Authorities have confirmed that there are no current plans to introduce a national tourism tax in England; however, local areas have the option to implement charges on overnight stays by collaborating with the accommodation sector through a Business Improvement District approach, similar to arrangements in Scotland and Wales.
- Inbound tourism remains the UK’s third-largest service export, and Reeves emphasized last year's 'once-in-a-generation budget' fixed prior economic issues while promising future tax policies.
- The standoff suggests that while tourism taxes exist elsewhere in the UK, England may delay adopting them, balancing economic support with the devolution agenda and business concerns.
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Council tax branded 'unfair and regressive' as calls for a tourist tax mount - The Mirror
Cash-strapped town halls are being forced to deliver more with less funding, leading to rising unhappiness from voters, the Housing, Communities and Local Government Committee said
·London, United Kingdom
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Total News Sources20
Leaning Left3Leaning Right3Center7Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
L 23%
C 54%
R 23%
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