Council leaders will have no veto over the North East mayor's plans to impose a new tourist tax, under new legislation introduced in Parliament on Wednesday. The Visitor Levy Bill would give mayors like Kim McGuinness the ability to introduce a charge on overnight stays at hotels, holiday lets, bed and breakfasts, and guesthouses.
Mayor's powers under new bill
The Labour mayor has long called for such a levy, saying the revenue would allow the region to "compete with rival destinations" by investing more in cultural attractions. While she had advocated a £2-per-night charge, the Government said it wanted to "protect lower cost family breaks" by requiring a percentage figure rather than a flat rate. Ten mayors, including Ms McGuinness, have committed to not imposing a charge above 5%.
The North East mayoral authority confirmed to the Chronicle on Wednesday that the proposed measures would not allow Ms McGuinness's cabinet to block her plans. Cabinet members will be allowed to comment on proposals, and the mayor would be required to respond to their recommendations, but the decision to impose the levy would rest with her.
Political opposition
The move has proved controversial, with rival political parties within Ms McGuinness's cabinet decrying the idea. Reform UK's council leaders in Durham, Gateshead, South Tyneside and Sunderland urged the mayor in September to rule out imposing a levy, while Northumberland's Conservative administration has vowed to block a scheme they fear will burden the struggling hospitality trade.
Those five councils would hold a majority within the North East mayoral authority cabinet and could theoretically vote to block the plan if cabinet approval were required. Ms McGuinness is understood to have asked Andy Burnham to give mayors such decision-making powers at a meeting last month, prompting Reform UK's Darren Grimes to brand her a "megalomaniac".
Implementation details
Under the new bill, non-mayoral "foundation" strategic authorities elsewhere in England would only be allowed to impose a levy with unanimous support from their leadership. Those seeking to introduce a levy will be required to publish a draft plan, an assessment of the impact on the local economy, businesses and visitors, and how the revenue will be spent. Mayors will also be able to set additional limited local exemptions, such as for camping pitches.
Ms McGuinness said on Wednesday: "The North East has vibrant cities, stunning coast and countryside in Northumberland and Durham and a welcome that keeps people coming back. A levy here will mean we can compete with rival destinations which already raise money from visitors. We want to double the scale of our tourist economy and create thousands of new jobs as we do so. A small amount raised on each overnight stay means we can bring more major festivals to our region, support brilliant local events, improve the visitor experience and showcase the North East to the world."
