The Budget will allow local authorities to charge over night visitors a tax for staying overnight in their towns and cities, introducing a Holiday Tax and breaking Labour’s promises.
- This is despite the Housing Minister stating that she had ‘no plans’ to introduce a Holiday Tax. Last month in response to a question from James Cleverly, Housing Minister Alison McGovern said: ‘The Government currently has no plans to introduce a levy in England.’
This broken promise will:
- Impose another tax hotels and B&Bs across the country after Labour have already hiked up National Insurance and business rates last year. Hotels and B&Bs already pay VAT at 20 per cent, corporation tax, business rates and National Insurance, with the two latter already being hiked up by the Labour Government. This announcement is yet another Labour tax on British holidays, pushing up costs for hard-pressed families and yet another kick to British hospitality.
- Be another blow to the hospitality sector after 1,100 pubs and restaurants have closed since Labour’s last budget. Research by UKHospitality found that one in 25 jobs in hospitality has been lost since the Autumn Budget, equivalent to 84,000 jobs and 53 per cent of all job losses since the Budget. Furthermore, 1,122 hospitality venues have closed since the Budget, equivalent to two every single day.
- Cost the public up to £518 million as this Tourist Tax will be passed directly onto consumers, driving inflation and undermining any efforts to reduce the cost of living. Kate Nicholls, Chair of UKHospitality, warned the ‘damaging holiday tax’ could cost the public up to £518 million, adding, ‘Make no mistake - this cost will be passed directly on to consumers, drive inflation and undermine the government's aim to reduce the cost of living’
