Local mayors will be allowed to levy a “tourist tax” on overnight stays, the government has announced as part of an attempt to put more money into England’s cities and regions.
Local leaders in England will be given the power to impose a “modest charge” on visitors, the Ministry of Housing, Communities and Local Government said on Tuesday.
It comes just one day before Rachel Reeves unveils her long-awaited Budget in the Commons on Wednesday, where she is expected to set out a swathe of tax rises to plug a multi-billion pound gap in the public finances.
howdyoulikemenow93 on
This actually makes sense to bring some money back into the economy. A couple of £ per night is unlikely to deter most people – we pay similar taxes without issue in other countries
antipodal22 on
I take it there’s a different philosophy involved here to the wealth tax and the supposed mentality that it’ll scare people away.
Received wisdom being one of the great evils of all ages of course…
SevereAstronaut6866 on
Why not but knowing English councils they’re going to go crazy with this, ask £30 per person per night and then wonder why no one is coming anymore
bio4m on
Smart move but will only benefit cities that have a lot of tourism. So its really
London: The most visited city in the UK by a significant margin.
Wow Labour so innovative incredible new tax ideas wowowowow
rebelc93 on
I like this. Tourists use the infrastructure and benefit from visiting the cities. As we have an open economy we do also have a lot of business travel. Would be nice if they can reduce business rates or VAT to boost hospitality in return of bringing this in. That sector has struggled and the last budget did not help them.
whatmichaelsays on
Not really a surprise that the treasury / cities are looking at these – tourism taxes are pretty low-hanging fruit.
Lots of cities around the world have them, so tourists are used to paying them. Tourists, particularly international tourists, tend to be as price sensitive so they’ll pay it without much grumbling, and council leaders don’t really lose any political capital by introducing them, because their voters aren’t the ones paying them.
Happy_Mirror1985 on
I understand and agree with this but I wish they’d make exemptions for UK residents. It’s already expensive enough to travel within the UK and for many, this will present a challenge especially if it’s per night.
TellMeManyStories on
Tourist taxes are a bad plan because toursis have such a wealth inequality, and you can’t measure it.
Some tourists will be backpackers staying in a £20/night hostel, whereas others will be paying £500/night for a fancy suite.
There is no level of tax which covers both fairly. Set the tax at £20/night and all the backpackers don’t come to the UK, and simultaneously mr fancy-suite isn’t paying much. The tax at any level will raise less money than it deters in trade.
Whereas VAT on things tourists buy *does* cover this, since the rich buy more. We just need to redistribute that VAT revenue to the towns where tourists go.
WinHour4300 on
Great in addition to the vast train fares to visit family I’ll probably be charged a “tourist tax” on what is already an overpriced shabby hotel room as it’s a tourist location.
Everyday I regret more moving away from family to work. Should have just lived on benefits up North.
Of course it doesn’t impact the wealthy as they’ve got all those large empty homes for inheritance tax purposes. If not a second one somewhere.
12 commenti
Local mayors will be allowed to levy a “tourist tax” on overnight stays, the government has announced as part of an attempt to put more money into England’s cities and regions.
Local leaders in England will be given the power to impose a “modest charge” on visitors, the Ministry of Housing, Communities and Local Government said on Tuesday.
It comes just one day before Rachel Reeves unveils her long-awaited Budget in the Commons on Wednesday, where she is expected to set out a swathe of tax rises to plug a multi-billion pound gap in the public finances.
This actually makes sense to bring some money back into the economy. A couple of £ per night is unlikely to deter most people – we pay similar taxes without issue in other countries
I take it there’s a different philosophy involved here to the wealth tax and the supposed mentality that it’ll scare people away.
Received wisdom being one of the great evils of all ages of course…
Why not but knowing English councils they’re going to go crazy with this, ask £30 per person per night and then wonder why no one is coming anymore
Smart move but will only benefit cities that have a lot of tourism. So its really
London: The most visited city in the UK by a significant margin.
Edinburgh: Second
Manchester: Third
Birmingham:
Wont really help smaller towns much
Doesn’t boost England’s cities…. It’s boosts tax authorities coffers
Wow Labour so innovative incredible new tax ideas wowowowow
I like this. Tourists use the infrastructure and benefit from visiting the cities. As we have an open economy we do also have a lot of business travel. Would be nice if they can reduce business rates or VAT to boost hospitality in return of bringing this in. That sector has struggled and the last budget did not help them.
Not really a surprise that the treasury / cities are looking at these – tourism taxes are pretty low-hanging fruit.
Lots of cities around the world have them, so tourists are used to paying them. Tourists, particularly international tourists, tend to be as price sensitive so they’ll pay it without much grumbling, and council leaders don’t really lose any political capital by introducing them, because their voters aren’t the ones paying them.
I understand and agree with this but I wish they’d make exemptions for UK residents. It’s already expensive enough to travel within the UK and for many, this will present a challenge especially if it’s per night.
Tourist taxes are a bad plan because toursis have such a wealth inequality, and you can’t measure it.
Some tourists will be backpackers staying in a £20/night hostel, whereas others will be paying £500/night for a fancy suite.
There is no level of tax which covers both fairly. Set the tax at £20/night and all the backpackers don’t come to the UK, and simultaneously mr fancy-suite isn’t paying much. The tax at any level will raise less money than it deters in trade.
Whereas VAT on things tourists buy *does* cover this, since the rich buy more. We just need to redistribute that VAT revenue to the towns where tourists go.
Great in addition to the vast train fares to visit family I’ll probably be charged a “tourist tax” on what is already an overpriced shabby hotel room as it’s a tourist location.
Everyday I regret more moving away from family to work. Should have just lived on benefits up North.
Of course it doesn’t impact the wealthy as they’ve got all those large empty homes for inheritance tax purposes. If not a second one somewhere.