A Commons debate has highlighted claims that Andy Burnham's proposed "holiday tax" – formally the Overnight Visitor Levy – would hit business travellers and people visiting sick relatives, not just holidaymakers, while MPs would be able to claim the charge back on parliamentary expenses when staying in London hotels for work. The disparity has drawn criticism from both Conservative and Labour MPs, who argue the levy, set to add 5% to accommodation costs, is being applied unfairly to those with no choice but to travel, while public office-holders are shielded from the financial impact.

Figures from the Great Britain Tourism Survey show business trips accounted for 16 million overnight stays in 2024, with visits to friends and relatives making up a further 110 million of 307 million total stays. UKHospitality chief executive Allen Simpson warned the levy could put 33,000 jobs at risk and called for it to be scrapped, while Labour MPs including Jonathan Davies and Emma Lewell pressed ministers to exempt groups such as young people, disabled respite-care visitors and local hospitality businesses. Meanwhile, the Independent Parliamentary Standards Authority confirmed that MPs representing constituencies outside London can claim up to £230 a night for hotel stays in the capital, inclusive of any taxes, with about £700,000 paid out in 2025-26.