Labour’s new ‘tourist tax’ will price many Brits out of going on holiday – causing yet further pain for those already struggling with the rising cost of living.
The Government’s new ‘Overnight Visitor Levy Bill’, announced in today’s King’s Speech, will allow English regional mayors to hit tourists with an extra charge on overnight stays.
The surcharge is expected to be five per cent of accommodation costs, and will go towards funding local infrastructure and tourism.
Labour’s metropolitan mayors have heaped praise on the tax – with London Mayor Sadiq Khan saying it is ‘great news for London’.
But Rachel Reeves’ levy will only cause more misery for Brits already struggling with their household finances, and comes despite Labour saying it is doing all it can to ease the cost of living.
New polling reveals one in five Brits would choose not to book a holiday in England if it were introduced.
Commenting after the King’s Speech, Shadow chancellor Sir Mel Stride said that the new family holiday tax will be ‘a blow for seaside towns and hit families in the pocket’ – and that the Conservatives would oppose the new tax when Labour bring it to Parliament in the next parliamentary session.
He said: ‘At a time when every penny matters, my message to Rachel Reeves is clear: hands off our holidays.’
And Reform’s Treasury spokesperson Robert Jenrick blasted the tax as a ‘death knell for many seaside resorts’.
The Government’s new ‘Overnight Visitor Levy Bill’, announced in today’s King’s Speech, will allow English regional mayors to hit tourists with an extra charge on overnight stays
Rachel Reeves’ levy will squeeze Brits even further as they struggle with their household finances, with new polling revealing one in five Brits would choose not to book a holiday in England if it were introduced
Shadow chancellor Sir Mel Stride said that the new family holiday tax will be ‘a blow for seaside towns and hit families in the pocket’
He confirmed that no Reform UK mayors would enforce the ‘terrible tax’ – finally announced today after months of speculation.
This comes as more than twice as many Brits oppose Labour’s holiday tax than support it – with those most affected by the rising cost of living most against the measure.
Nearly two-thirds of people who ‘struggle to make ends meet’ disagree with the holiday tax according to the research from campaign group UKHospitality.
The organisation said the tax could add more than £100 to the cost of a two-week break.
And with Labour just taking a thumping at the local elections, the research suggests voters could punish the Government even further for introducing a tax on holidays.
The polling reveals voters are nearly 10 times more likely to vote against an MP who backs the holiday tax than back them at the ballot box, threatening the Government’s majority in 200 seats – and putting the political futures of Wes Streeting, Ed Miliband, Angela Rayner, Rachel Reeves, Yvette Cooper, Emma Reynolds and Steve Reed at risk.
Allen Simpson, chief executive of UKHospitality, said: ‘This polling should be a wake-up call for every MP tempted to back the holiday tax.
‘It is opposed by a majority of their constituents, it would deter millions from holidaying in England, and it would hit hardest the very families the Government says it wants to help.
‘In her Spring Statement, the Chancellor said being able to pay for a holiday should never be too much to ask, but this tax puts a holiday out of reach for many.’
And the levy is yet another hammer blow to the hospitality industry, already the victim of ‘eye-watering’ tax rises under Labour.
Kate Nicholls, Chair of UKHospitality, said the tax is ‘wrong policy at the worst possible time’.
She explained: ‘Accommodation businesses are already battling enormous cost increases and declining confidence.
‘Adding a new tax on to family holidays, business travel and international tourism will strangle growth, reduce investment and put jobs at risk.’
England is currently the only country among the G7 which blocks authorities from allowing tourist levies.
It is thought a tourist levy in London alone could raise £240m a year – with Scotland and Wales already introducing taxes on overnight visitors.
