Labour mayors face pressure to pair Andy Burnham's new "holiday tax" with a cut to VAT for hospitality businesses, as UKHospitality warns that without such support, city breaks in England will become far pricier than equivalent trips abroad. The Prime Minister has given the ten Labour metro mayors power to add 5 per cent to hotel, B&B and holiday let costs via the Overnight Visitor Levy, but the plan is drawing criticism from industry figures and opposition politicians who say it will hit poorer families hardest while squeezing struggling pubs and restaurants.

UKHospitality chief executive Allen Simpson told mayors that a family from Bootle visiting Manchester could face a total tax burden of around 27 per cent on a hotel stay, compared with just 14.5 per cent for a similar trip to Berlin, and urged them to back a reduction in VAT on food, drink and accommodation from 20 per cent to 10 per cent, in line with France, Spain, Germany and Italy. Butlin's chief executive Jon Hendry Pickup and Conservative leader Kemi Badenoch also criticised the levy, while the government's own report acknowledged affordability concerns during peak periods but defended a percentage-based charge as fairer than a flat fee. Transport Secretary Heidi Alexander insisted the decision rests with regional mayors, not the government, noting London's Lord Khan could use the revenue to fund public transport improvements.