THE GREAT British break might not be so great very soon after it was announced that the overnight ‘holiday tax’ is set to be pushed forward.
Included in the King’s Speech was the dreaded new levy on staycations and one Butlin’s boss has hit back saying it will have big ‘consequences’ for families.
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Plans to introduce the ‘Overnight Visitor Levy‘ for staycations in England was first announced late last year, and was spelled out again in the King’s Speech two days ago.
Essentially, the government’s plan is introduce levy overnight accommodation like hotels, B&Bs, campsites or holiday homes.
It would allow local authorities in England to charge visitors an additional fee on overnight stays which is similar to systems already used in parts of Europe.
According to UK Hospitality, the new tax could add £100 to a two-week family stay based on £2 per person per night.
Unsurprisingly, the plans have not been met with positivity.
Matt Rake who is a resort director at Butlin’s in Bognor Regis – said the tax would have “consequences”, especially for working families.
He said: “It’s disappointing that the government is pressing ahead with the holiday tax despite how clear businesses, consumers and the hospitality sector have been about the potential consequences.
“In the Spring, the government said families being able to pay for a holiday should never be too much to ask, yet today they’ve confirmed the introduction of a measure that will hurt working families hard.
“We know how important domestic tourism is for Bognor Regis and the local businesses here. Holidays and short breaks support jobs and investment across our community throughout the year.”
He added that in a recent poll, 73 per cent of people would reduce or cut back on holidays in England if extra costs were introduced.
The ‘holiday tax’ was formally announced in the Autumn Budget in November 2025.
And two hundred bosses from firms including Butlin’s, Haven and Parkdean Resorts have written to the Chancellor hitting out at the plans.