UK holidaymakers face a fresh blow from the government with the Labour Party reportedly “considering” a new £12 per night tourist tax to plug a Budget deficit. Staycationers and holidaymakers could be hit with new tourist tax when staying in UK campsites, hotels and B&Bs.
The government is reportedly considering the move as it could raise an estimated £1 billion. The new scheme would start from £1 per person at a campsite and would escalate to £15 per person at a five-star hotel. When asked about the rumoured tax, the Treasury said: “We do not comment on tax speculation outside of fiscal events.”
Both UK residents and holidaymakers from abroad will be required to pay the new tax. Sir Rocco Forte, a prominent UK hotelier, has issued a warning regarding the implementation of the tax, saying: “Travel and tourism is one of the most vital parts of the UK’s economy, contributing over £250billion a year to the UK’s GDP and supporting 3.5million jobs.
READ MORE 16 counties in England face MORE snow this week with ‘five inches’ hitting
“This would be a pernicious new tax charged on top of all other taxes. The UK is already not a cheap destination,” he added. According to the TaxPayer’s Alliance, the move has the potential to raise an estimated £1 billion a year.
The source added that the Chancellor has requested an OBR economic and fiscal forecast for March 26, which will assess performance against fiscal rules. “Difficult decisions have already been taken on spending,” the Treasury source said, adding that taxpayer money would be directed towards the Prime Minister’s Plan for Change.
The source emphasised this includes “boosting growth to put more money in working people’s pockets.” It comes as Chancellor Rachel Reeves will be back at her desk in the Treasury on Monday after her trade mission to China as markets reopen after last week’s bruising bond selloff and ahead of some key economic data on inflation and growth.
This post was originally published on here
