Badenoch warns of tourist tax ‘disaster’ for hospitality industryKemi Badenoch hit out at plans to give England’s regional mayors powers to impose a levy on overnight stays to raise funds for their areas.Conservative Party leader Kemi Badenoch has criticised the tourist tax plans (Stefan Rousseau/PA)PA WireDavid Hughes2 minutes ago
Planned tourist taxes on overnight stays will be a disaster for hospitality businesses, Tory leader Kemi Badenoch warned.
Andy Burnham’s Government has given permission for regional leaders across large parts of England to introduce levies on overnight stays to help raise funds for their areas.
But Mrs Badenoch warned tourists would simply stay away from the UK if the price of a holiday increased.
Conservative Party leader Kemi Badenoch hit out at the tourist tax plans during a visit to the British Museum’s Bayeux Tapestry exhibition (Stefan Rousseau/PA)PA Wire
Speaking after visiting the Bayeux Tapestry exhibition at the British Museum in central London, she told the Press Association: “I do worry about a tourist tax having an impact on our wonderful culture sector, it is a tax on families.
“Many people will decide that they don’t actually want to stay overnight in London if it’s going to cost them extra money.
“A lot of people are very concerned about the cost of living. They’re watching their money very, very carefully. They’re looking after their money very carefully.
“If you make things more expensive, fewer people will be able to afford them.”
Mrs Badenoch hit out at Labour’s approach to tax, saying the imposition of VAT on private schools “was a disaster”.
“I predict a similar thing will happen with a tourism tax,” she said.
“It is a tax on families.
“It is a tax on a local economy.
“It doesn’t bring in money. It actually takes business away.”
Under Government plans to give mayors greater economic power in their region, local leaders will set the overnight levy as a percentage of the cost of accommodation, rather than a flat rate, which ministers argue will protect budget trips.
The levy will have no upper limit, though Government sources believe mayors are unlikely to make it too expensive, with most indicating it would be a few per cent.
Conservative Party leader Kemi Badenoch with former chancellor George Osborne, chairman of the British Museum (Stefan Rousseau/PA)PA Wire
Labour’s 10 regional mayors have committed to keep any tax rate below 5%, saying the levy should be “modest” and avoid “extreme variation between regions”.
Hotel and tourism firms have warned the uncapped proposals will hit British holidaymakers hard, but ministers say the policy will help local leaders boost investment in their areas.
Mayors will decide how to spend the revenue raised from the fee, which will apply to both overseas tourists and Britons on so-called “staycations”, rather than money being funnelled back into the Treasury.
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Ministers plan to introduce legislation establishing the levy “in due course”, with mayors expected to set out their plans by March 2028.
Mrs Badenoch said she was “very glad” that Conservative mayors have said they will not take up the opportunity to implement a levy.
“Tax is not the answer to everything,” she said.
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