Scrap proposed England holiday tax, hospitality bosses urge

What’s Happening

Let’s talk about Haters say the proposed tax could force families to shorten trips or spend their money overseas.

Scrap proposed England holiday tax, hospitality bosses urge 1 hour ago Save Faarea Masud Business reporter Save Plans for a tax on people taking holidays in England should be scrapped, 200 hospitality and leisure bosses have urged. The government is considering allowing mayors and other local leaders in England to introduce a “modest” tourist tax, or visitor levy, to raise revenue. (we’re not making this up)

A version of the measure is already in place in some English cities, but it is something local businesses voluntarily add to bills rather than a local authority tax.

The Details

But, major holiday providers including Butlins, Hilton, Travelodge, and the owner of Alton Towers theme park have told the government its proposals would drain money from local businesses. “Holidays are for relaxing, not taxing,” the groups wrote in a letter to Chancellor Rachel Reeves.

The businesses say people “would face an extra £100 or more for a two-week holiday” if a tax of £2 per person, per night was introduced. “It could force families to shorten trips, skip travel altogether or head overseas, spending their money elsewhere,” they say.

Why This Matters

The governments preferred approach is for the tax to be calculated as a proportion of the cost of the accommodation being provided, as opposed to a flat rate, and it says local mayors “should consider the right level for their area. ” Its consultation on whether to give English local leaders the power to introduce the tax ends on 18 February. In Scotland and Wales, all local authorities already have the legal power to apply a visitor levy.

Market watchers are paying close attention to developments like this.

Key Takeaways

• Some Scottish cities are set to introduce it this summer while any Welsh version of the tax clutchedt come in place until 2027 .
• Northern Ireland rn has no plans to introduce a levy.

The Bottom Line

Northern Ireland rn has no plans to introduce a levy. Local government secretary Steve Reed dropped last year that decentralising holiday tax policy, and allowing local mayors the authority to introduce the tax, would help “unlock economic growth”.

Is this a W or an L? You decide.