Andy Burnham to hand mayors unlimited powers to impose tourist tax
Andy Burnham is preparing to give England's regional mayors the power to introduce an uncapped tourist tax on overnight accommodation, a move that has drawn sharp criticism from the hospitality industry. Under the plan, mayors would be able to levy a percentage-based charge on stays rather than a fixed fee, which the government argues will help protect budget holidays, though the absence of any ceiling on the tax has alarmed trade bodies who fear it could damage local tourism economies and cost jobs.
UK Hospitality chief executive Allen Simpson has written to Burnham urging a "holiday bonus" alternative instead, warning that UK breaks are already pricier than they appear due to higher VAT, and pointing out that similar taxes in cities such as Paris, Rome and Berlin are capped, unlike the proposed English scheme. He cited Edinburgh's new tourism tax as already causing damage, and cautioned that jobs, seasonal holiday park openings and household budgets could suffer. The policy, first floated under Sir Keir Starmer and mirroring schemes already in Scotland and Wales, will let mayors decide how to spend the revenue; Housing Secretary Angela Rayner is due to meet mayors in Downing Street ahead of further details expected on Thursday.
- Burnham to let English mayors set uncapped tourist taxes on accommodation
- Hospitality leaders warn of job losses and higher holiday costs
- Rayner meets mayors before fuller details announced Thursday
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Andy Burnham is the mayor of Greater Manchester, one of a growing number of regional mayors in England who have been given increasing powers over local policy. A tourist tax, sometimes called a visitor levy, is a charge added to overnight stays such as hotels, which many cities around the world already use to raise money from tourism. The idea has been under discussion in England for some time, having first been raised under Prime Minister Sir Keir Starmer, and similar taxes are already in place in parts of Scotland and Wales.
The plan would let mayors set a charge as a percentage of the cost of a stay, rather than a flat fee, with no upper limit on how high it could go, and mayors would decide how the money raised is spent. This has put the government at odds with the hospitality industry, represented by trade body UK Hospitality, which fears an uncapped charge could push up prices, deter visitors and threaten jobs in tourism-dependent areas.
The issue matters because it touches on how much power local mayors should have to raise taxes, how England's tourism sector compares with cities abroad that already charge similar fees, and the wider question of affordability for holidaymakers. Angela Rayner, the Housing Secretary, is involved because visitor levies fall within her department's responsibilities, and mayors are expected to discuss the plan with the government before further details are confirmed.