Holidaymakers coming to the UK may be hit with a new tourist tax when staying in campsites, hotels and B&Bs. The Labour Government is reportedly considering the move which could raise an estimated £1billion for public spending.
Brits opting for staycations would be faced with the extra charges too, as UK residents would be required to pay. The scheme would start from £1 per person per night, reaching up to a staggering £15 for a five-star hotel.
According to TaxPayer’s Alliance, the money raised would amount to £1bn in order to fill Rachel Reeves’ Budget deficit as the economy flatlines.
However, the news will not come as a surprise to one UK city which already imposes a tourist tax on visitors.
Holidaymakers going to Manchester are required to pay the City Visitor Charge (CVC) which stands at £1 per room, per night. Spokesperson for the scheme, Kumar Mishra, said the money raised is used to keep the streets of Manchester clean, as well as market the city.
The tax has also been adopted in areas of Wales and Scotland, as well as popular tourist destinations throughout Europe including Paris, Barcelona and Venice.
The Labour government in Wales is currently implementing their plans to introduce a fixed levy of £1.25 per person, per night. Edinburgh has also proposed a tax of 5% of accommodation costs.
Sir Rocco Forte, the UK businessman and hotelier, warned that this tax in England would come as a major blow to Britain’s tourism industry.
He told the Mail on Sunday: “This would be a pernicious new tax charged on top of all other taxes.
“The UK is already not a cheap destination, and this can only deter cost-conscious visitors who will increasingly choose to go elsewhere.”
Sources from Whitehall have not denied the consideration of a nationwide hotel tax, with Ms Reeves refusing to comment on “tax speculation outside of fiscal events”.
The pandemic saw a huge drop in UK visitation as levels are yet to return to pre-2020. According to UKHospitality, there were 38 million overseas tourists in 2023, compared to 41m in 2019.
When asked about the rumoured tax, the treasury told the Sun: “We do not comment on tax speculation outside of fiscal events.”
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