UK Holiday Tax Plans Face Backlash from 200 Hospitality Leaders
British holidaymakers could see the cost of a two-week break in England increase by £100 or more if the government proceeds with plans to introduce a new 'holiday tax', according to prominent figures in the hospitality and leisure sectors. Around 200 bosses from major UK accommodation firms, including Butlin's, Hilton, and Travelodge, have collectively written to the Chancellor, stating that "holidays are for relaxing, not taxing". They cautioned that such a levy would severely impact families, jeopardise employment, and divert vital funds away from local communities.
Industry Leaders Urge Government to Scrap Proposals
Coordinated by the trade body UKHospitality, the letter urges ministers to abandon proposals for a visitor levy in England. Rachel Reeves confirmed in last year's autumn budget that English regional mayors would be granted powers to introduce these visitor levies on overnight stays in hotels, Airbnbs, and other holiday lets. The plans, which mirror similar devolved moves in Scotland and Wales, are designed to give local mayors more funds to invest in local infrastructure and transport. Mayors in London and Liverpool are already among those to have welcomed the plans, and indicate they will introduce levies.
In the letter, the industry bosses said: "This 'Holiday Tax' will hit families hardest, puts jobs at risk, drain money from local businesses and communities and undermine the Government's growth agenda. For millions of hardworking families, a UK holiday is their chance to switch off and spend quality time together."
Potential Impact on Families and Local Economies
The letter further warned: "For many, this tax will make their holiday unaffordable, meaning families will shorten trips, forgo a break altogether, reduce their spending with pubs, restaurants, events, leisure activities and local attractions, or travel overseas – spending their money and creating jobs elsewhere." This comes as hotels and other hospitality operators have also warned over the impact of upcoming increases to their business rates payments. Pubs received additional support from the Chancellor earlier this month to reduce their bills by 15 per cent from April, but other firms in the UK's hospitality sector have said they are still facing significant pressure and urged for further support.
Hospitality Sector Under Existing Pressure
The fresh letter highlighted: "The UK's hospitality sector is already under pressure, with rising business rates, energy costs, tax bills and employment costs. It already contributes billions of pounds in tax, through business rates, employment taxes and VAT, which at 20 per cent is double the rate of competitors in France, Italy, Spain or Portugal. Do not turn the Great British break into a luxury. Scrap the holiday tax and back the families, workers and the businesses who make England worth visiting."
Government Response and Rationale
A Government spokesman said: "Tourists travel from near and far to visit England's brilliant cities and regions. We're giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investment in the economy, supporting thriving communities. We expect any new charges to be modest and in line with other countries, and it is for mayors to consider the right level for their area." The debate continues as stakeholders weigh the potential benefits of local investment against the risks of increased costs for consumers and businesses.
