Labour is facing a significant backlash over its new tax on holidays, which critics fear could deter Britons from visiting traditional seaside resorts. Holidaymakers, businesses, and even Labour backbenchers have voiced opposition to the levy, which would increase the cost of staycations.
Details of the Overnight Visitor Levy Bill
The Overnight Visitor Levy Bill, announced in Wednesday's King's Speech, would empower English regional mayors to impose an additional charge on tourists for overnight stays. The surcharge, applied to accommodation costs, is intended to fund local infrastructure and tourism initiatives.
Concerns Over Cost of Living
Critics argue that the levy contradicts Labour's pledge to address the rising cost of living. According to polling by UKHospitality, nearly two-thirds of people who struggle to make ends meet oppose the tax. Additionally, almost three-quarters of holidaymakers stated it would discourage them from holidaying in England, lead to fewer trips, or reduce spending while away.
Research from Oxford Economics suggests the charge could add over £100 to a two-week break, with Britons potentially paying £1.6 billion in additional taxes if the legislation passes.
Industry and Political Backlash
Jon Hendry Pickup, CEO of Butlin's, warned that the tax would disproportionately hurt working families. Labour backbenchers have also joined the calls for a rethink. Chris Webb, Labour MP for Blackpool South and chair of the Tourism and Hospitality APPG, said businesses fear the levy will deter bookings. Dan Aldridge, Labour MP for Weston-super-Mare, stated the tax must be practical and that he would oppose it for his constituency.
A spokesperson for the Ministry of Housing, Communities and Local Government dismissed the concerns as speculation, noting that the final design of the visitor levy has not been decided.
