PATRICK DARDIS: Burnham’s new holiday tax is delusional, unforgivable and, for many in the hospitality trade, unsurvivable
Daily Mail columnist Patrick Dardis criticises Labour's proposed "overnight visitor levy", a new tourism tax he warns could devastate seaside towns such as Burnham-on-Sea in Somerset and hospitality businesses nationwide. He argues the policy, confirmed by Housing Secretary Angela Rayner, would compound existing pressures on the sector from higher national insurance contributions, the rising minimum wage and business rates, and risks accelerating economic decline in communities already struggling with the cost-of-living crisis.
Under the plan, councils and mayors would gain powers to impose their own uncapped nightly tax on accommodation, calculated as a percentage of costs that already include 20% VAT. Trade body UK Hospitality estimates the levy could add £100 to £120 to a typical family holiday, cost 33,000 jobs and remove £2 billion from the economy, while Dardis notes a similar scheme in Scotland has already forced five councils to pause it after damage to businesses such as Scottish Ballet. He contrasts this with Andy Burnham's more modest £1-a-night Manchester levy, warning that Burnham-on-Sea, which draws over 930,000 visitors a year but relies on relatively low-spending tourists, could be particularly hard hit.
In short
- Columnist attacks Labour's proposed uncapped tourist accommodation tax
- Trade body warns of 33,000 job losses and £2bn economic hit
- Scotland's similar levy already paused by five councils after backlash
Explained simply
A visitor levy is a charge on people staying overnight in hotels, guest houses or other accommodation. The proposed scheme would let councils and mayors set their own rates, so the amount could vary by area; it is separate from VAT, which is already included in many accommodation prices.
The debate is about how to fund local services and tourism, and how an extra charge might affect visitors and businesses. Hospitality businesses also face costs such as wages, National Insurance and business rates, while seaside towns often depend on visitors who spend modest amounts.
Burnham-on-Sea is a Somerset resort that attracts many visitors, and Andy Burnham is the mayor of Greater Manchester, where a £1-a-night visitor charge has been introduced. The policy matters because local authorities’ choices could affect holiday costs, tourism businesses and jobs in places that rely on overnight stays.
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