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Scrap proposals for England holiday tax, hospitality bosses urge

  • The UK Government confirmed in last year's autumn budget that English regional mayors will have powers to levy visitor charges on overnight stays, enabling more funding for local priorities.
  • Scotland and Wales have already taken similar steps, with Edinburgh charging a 5% levy starting in summer, while Aberdeen and Glasgow agreed levies and Orkney and Shetland rejected them.
  • Around 200 bosses of leading UK accommodation firms, including Butlin's, Hilton and Travelodge, warned the holiday tax could add £100 or more to costs, risking three million UK jobs.
  • Hospitality chiefs warned families may shorten trips, reduce spending with pubs, restaurants and attractions, or travel overseas, while the Government says charges should be modest and set by mayors.
  • With VAT at 20% already in place, pubs received additional support earlier this month reducing their bills by 15%, while mayors in London and Liverpool welcomed powers to introduce levies.
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The Independent broke the news in London, United Kingdom on Thursday, February 12, 2026.
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