Reform has pledged to scrap the Overnight Visitor Levy (holiday tax) should it win the next general election, promising to repeal the legislation that would allow Labour mayors to impose uncapped charges on hotel, guest house and Airbnb stays. Party Treasury spokesman Robert Jenrick argued the tax would be "a disaster for working people," claiming it would damage the tourism industry and cost thousands of hospitality jobs at a time when families are already struggling with rising prices. The pledge reflects broader political opposition from both Reform and the Conservative Party to the tax, which matters because it signals a potential reversal of Labour's plans if either opposition party gains power.

The holiday tax is forecast to add around £100 to the cost of a two-week break. Labour's ten metro mayors across areas from the North East to the West of England are expected to impose the levy, with plans due by March 2028, though they have suggested a 5 per cent ceiling. The hospitality industry has warned that the tax could result in £1.78 billion less being spent by tourists and lead to 33,000 job losses. Reform's two regional mayors and Conservative combined authority mayors have already committed not to introduce the charge, whilst the Conservative Party has additionally pledged to restore VAT-free shopping for overseas visitors.