Hospitality Industry Sounds Alarm Over Proposed 'Holiday Tax'
Families planning holidays in England could face an additional financial burden of £100 or more for a two-week break if government plans for a visitor levy proceed, according to stark warnings from industry leaders. The proposed charge, often dubbed a 'holiday tax', has sparked significant concern among major accommodation providers.
Joint Letter to Chancellor Urges Policy Reconsideration
Approximately 200 senior executives from prominent UK hospitality companies – including Butlin's, Hilton, and Travelodge – have united in opposition. Coordinated by trade body UKHospitality, they dispatched a joint letter to the Chancellor, urging the government to abandon the levy proposals. They argue the measures would disproportionately affect families and extract vital funds from local economies.
"This 'Holiday Tax' will hit families hardest, put jobs at risk, drain money from local businesses and communities and undermine the Government's growth agenda," the letter stated emphatically.
Potential Impact on Family Holidays and Local Spending
The industry leaders elaborated on the potential consequences, noting that for many working families, a domestic holiday represents a crucial opportunity to relax and spend quality time together. They warned the additional tax could render holidays unaffordable, leading families to shorten trips, cancel breaks entirely, or reduce their spending at local pubs, restaurants, events, and attractions.
"For millions of hardworking families, a UK holiday is their chance to switch off and spend quality time together," the letter explained. "For many, this tax will make their holiday unaffordable, meaning families will... reduce their spending with local businesses or travel overseas - spending their money and creating jobs elsewhere."
Background and Regional Implementation
The proposals stem from announcements in last year's Autumn Budget, which granted English regional mayors the authority to implement levies on overnight stays in hotels, Airbnbs, and holiday lets. This mirrors existing measures in Scotland and Wales. Mayors in major cities like London and Liverpool have already expressed support for these powers and indicated intentions to introduce visitor charges.
Broader Sector Concerns Over Rising Costs
Beyond the specific levy, hospitality operators highlighted broader financial pressures. While pubs recently benefited from a 15% reduction in business rates effective from April, other segments of the sector report continued strain from elevated energy bills, tax obligations, and employment costs.
The letter further noted, "The UK's hospitality sector is already under pressure... It already contributes billions of pounds in tax through business rates, employment taxes and VAT, which at 20% is double the rate of competitors in France, Italy, Spain or Portugal."
Their plea concluded: "Do not turn the Great British break into a luxury. Scrap the holiday tax and back the families, workers and businesses who make England worth visiting."
Government Response and Rationale
A Government spokesperson defended the policy, stating: "Tourists travel from near and far to visit England's brilliant cities and regions. We're giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investment in the economy, supporting thriving communities."
The spokesperson added that any new charges are expected to be modest and aligned with practices in other countries, with mayors responsible for determining appropriate levels for their specific areas.
