Hospitality industry fears jobs at risk from plan to give mayors powers to impose ‘tourist tax’
Summary
The UK government plans to let English mayors charge an overnight visitor tax on hotels and holiday rentals without a limit on how high the tax can be. The hospitality industry warns this could cost thousands of jobs because it may make UK holidays more expensive.Key Facts
- English mayors will have the power to impose an uncapped overnight visitor tax on hotel and holiday accommodation.
- Scotland already has a similar tax with no upper limit, while Wales caps the tax.
- Hospitality leaders were expecting a capped tax but were informed it would be unlimited.
- UK Hospitality estimates the new tax could lead to the loss of about 33,000 jobs.
- The sector says UK holiday costs are already high compared to other countries due to existing taxes.
- The visitor levy is being considered to help local governments that face budget cuts due to austerity.
- Mayors will not be forced to impose the tax, but there is concern they will use it extensively due to funding needs.
- The government is preparing to announce more details about the plan soon.
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