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Two hundred leaders from the hospitality and leisure sectors have appealed to the government to abandon plans for a tax targeting holidaymakers in England. This proposed visitor levy, which could be introduced by mayors and local officials, is intended to generate additional revenue but has faced strong opposition from major industry players.
Currently, some English cities operate a similar charge, but these are typically voluntary additions imposed by local businesses rather than formal taxes enacted by authorities. Prominent firms such as Butlin’s, Hilton, Travelodge, and the Alton Towers theme park operator have warned that the new proposals could siphon money away from local enterprises. In a letter addressed to Chancellor Rachel Reeves, they emphasized that “Holidays are for relaxing, not taxing.” They further highlighted that if a fee of £2 per person, per night were to be implemented, families could end up paying over £100 extra for a fortnight-long trip, potentially leading them to reduce the duration of their vacations, avoid travel altogether, or choose destinations abroad instead.
The government’s preferred model would calculate the tax as a proportion of accommodation costs rather than a fixed amount, leaving the exact rate to be set by local leaders according to their region’s needs. A consultation on this policy is open until 18 February. Unlike England, all local authorities in Scotland and Wales already have authority to impose visitor levies, while Northern Ireland has no current plans to introduce such charges. Supporters of the tax argue that local leaders are well-positioned to invest the proceeds into projects that support growth and enhance the appeal of their areas for tourists and residents alike.
Some places in England have already experienced this concept in practice. For example, since 2023 Manchester has implemented a £1 per room visitor charge, which generated £2.8 million in its first year. The Manchester accommodation business improvement district, consisting of 74 hotels and serviced apartment providers, has used the funds to promote stays during periods of traditionally low occupancy. Nonetheless, critics such as Allen Simpson, CEO of UKHospitality, contend that the UK’s existing tax burden is already high and that the new levy would further increase holiday costs. He urged the government to encourage tourism rather than add new taxes, calling on officials to “scrap the holiday tax.” Meanwhile, several other UK cities, including Edinburgh, Aberdeen, and Glasgow, have decided to introduce similar visitor levies, while some councils like Orkney and Shetland have opposed the idea.
A UK government spokesperson defended the move, stressing that mayors should be empowered to use these funds for local priorities, fostering economic growth and investment. They assured that any charges would be modest and comparable to those applied in other countries. However, Conservative MP Andrew Griffith criticized the plans, pointing out that businesses are already struggling due to increases in business rates under the Labour government, and warned that a holiday tax could harm families and damage trade in towns and communities
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