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Ministers are laying out plans for a massive 'tourist tax' in England today as fears grow that it could fuel a jobs bloodbath.
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it → see → bloodbath
Mayors and other local leaders will get powers to impose charges on accommodation in Labour's latest move to raise revenues.
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Mayors → get → revenues
Previously a flat fee had been mooted – but it is now set to be a percentage of the cost of overnight stays, with no upper limit.
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it → moot → limit
That could add hundreds of pounds to the costs of holidays, with businesses warning that tens of thousands of roles in hospitality are at risk.
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thousands → add → risk
London mayor Sadiq Khan is considering a charge of up to 5 per cent, potentially raising £580million a year for his coffers.
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Khan → consider → coffers
Angela Rayner will give more details of the proposals at a meeting with mayors in 'No10 North' later today.
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Rayner → give → North
Plans for the tax were first announced by Sir Keir Starmer, after similar schemes were introduced by the devolved governments in Scotland and Wales.
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schemes → announce → Scotland
Plans for a 'tourist tax' appear to have been ramped up by Andy Burnham, who was previously Manchester mayor
Counties like Cornwall attract huge numbers of tourists who could potentially face charges
Angela Rayner will give more details of the proposals at a meeting with Mayors in 'No10 North' later today
But they appear to have been ramped up by Andy Burnham.
Charges of a similar nature already exist across Europe, with the revenue used to fund local services.
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revenue → appear → services
Mayors would decide how to invest the money raised from the levy.
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Mayors → decide → levy
Mr Burnham introduced a City Visitor Charge while mayor of Manchester in April 2023, at £1 per room per night.
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Burnham → introduce → night
There have previously been estimates that a 3 per cent levy in London could raise £350million a year.
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levy → raise → 350million
But Lord Khan has now indicated the charge could be up to 5 per cent, which might bring in more than £580million.
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which → indicate → 580million
Tory Tees Valley mayor Lord Houchen has flatly rejected the idea of a tourist tax, while Kemi Badenoch has condemned the idea.
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Badenoch → reject → idea
Groups representing the tourism trade have warned about the impact of the levy and called for consistency in how the tax operates across different regions.
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tax → represent → regions
Allen Simpson, chief executive of UK Hospitality, told BBC Radio 4's Today programme a new tourism tax in Edinburgh is 'already having damaging effects'.
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tax → tell → effects
He said holidays in the UK are 'already more expensive' than they appear because of higher VAT, even before the tourist tax.
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they → say → tax
Mr Simpson added: 'What we're talking about here is an open-ended power for mayors to set tourism taxes at any level they want.
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they → add → level
And remember that if you go to Paris, if you go to Rome, if you go to Berlin, you're paying a small tourism tax, but it's capped.'
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it → remember → tax
He said residents in communities which rely on tourism and hospitality would see jobs put at risk.
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jobs → say → risk
There are estimates that a 3 per cent levy floated by Lord Khan in London could raise £350million a year
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levy → be → 350million
The Mayor of Londom has welcomed proposals for a levy in the capital and added that it 'needs to happen sooner rather than later'
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it → welcome → capital
'I would say to those people in these communities that their jobs are now at risk,' Mr Simpson said.
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Simpson → say → risk
'It will be the case that you'll have holiday parks which can't open in the shoulder seasons and of course people who go on holiday will just have that little bit less money in their pocket.
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who → have → pocket
Jon Hendry Pickup, boss of Butlin's, said the levy would 'hit those who can afford a holiday the least, the hardest'.
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who → say → holiday
'Big cities may welcome these mayoral powers, but treating every destination and hospitality business the same will leave resorts like ours to shoulder the burden.
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treating → welcome → burden
'Giving mayors the power to impose a levy without a national upper limit takes those concerns to another level and risks making family holidays less affordable, damaging demand and making it harder for businesses to hire young people.'
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businesses → give → people
Lord Khan said he 'strongly welcomed' the Government's plan and added that it 'needs to happen sooner rather than later'.
He continued: 'London's visitor economy is a huge success story, supporting jobs, businesses and investment across the capital and the wider country, and I have long argued that London should have the same flexibility as other major global cities to raise and invest funding locally.
'
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London → say → funding
A well-designed, modest levy has the potential to provide an important additional source of funding to support growth, strengthen London's offer to visitors and help us remain globally competitive.
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us → design → visitors
'It would allow us to reinvest in the places, infrastructure, culture and experiences that make London one of the world's greatest cities to visit, while helping manage the pressures that come with welcoming tens of millions of visitors every year.
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that → allow → visitors
'I will work closely with London's boroughs, accommodation providers, hospitality and tourism businesses and other partners, before final decisions are taken.'
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decisions → work → boroughs
Downing Street said the Government would 'trust local leaders to make decisions for their areas'.
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Government → say → areas
A No10 spokeswoman said: 'This afternoon, mayors will meet at No10 North to discuss the Government's devolution agenda.
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mayors → say → agenda
As part of that, we are confirming plans to give local leaders the power to introduce an overnight visitor levy.
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we → confirm → levy
'The fundamental principle behind this is that we trust local leaders to make decisions for their areas.
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we → trust → areas
That's why we're shifting power out of Whitehall and giving communities more control.
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we → shift → control
'More than 42million international visitors came to the UK last year, spending more than £32billion.
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visitors → come → 32billion
'So this levy is about ensuring more of the benefits of that tourism stay in local communities, with leaders able to reinvest funding in priorities such as transport to high streets and public spaces.'
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leaders → ensure → streets
