Families face £1.6bn tax hell on ‘great British holiday’ as 33,000 tourism jobs could be axed
FAMILIES are facing a whopping £1.6billion tax blow on the “great British holiday”, a new report has warned.
The findings from industry body UKHospitailty, with figures crunched by Oxford Economics, show that a proposal to slap a five per cent levy on accommodation could “decimate” the industry.
It comes as Labour Government has been proposing to allow local authorities the right to tax overnight stays in holiday parks, campsites, B&Bs and hotels as part of a new holiday tax.
UK Hospitality claim the proposed levy would slash GDP – a benchmark for the country’s economic health – by £2.2billion.
It also warned it would result in a £1.8billion reduction in hospitality spending.
The group also claimed that it would lead to the loss of 33,000 job roles in areas of the UK where there are few alternative employment opportunities.
Allen Simpson, chief Executive of UKHospitality, said the tax would make staycations “more expensive and decimate tourism.”
“There are no winners from a holiday tax. From coastal communities and city centres to local guesthouses, pubs and taxi firms, the impacts are stark and indiscriminate.
He added: “Taxes up, jobs lost and our high streets hit once again. Holidays are for relaxing, not taxing. The government should keep it that way and stop the holiday tax.”
The charge, which could be applied to hotels, Airbnb-style accommodation and short lets, could amount to a whopping £1.6billion holiday tax on tourists by 2030, according to the figures
Meanwhile, Simon Palethorpe, chief of Haven, said it would mean fewer UK holidays resulting in “less investment and fewer jobs, often in areas where there are few alternative employment opportunities”.
He added: “In the UK, visitors are already paying double the VAT rate of the most popular overseas holiday hotspots. The UK is a great place to visit and we should be encouraging people to do so, not adding extra taxes.”
The government launched a consultation on the tax, with final views submitted last month.
Other measures that also could be introduced include a £2 tax per person per night on staycations.
However, it is worth noting that it will be up to individual mayors to decide whether or not to propose a charge for visitors to their towns or cities.
Government has previously said the charge will help improve local tourism infrastructure, public services.
But it has faced major pushback, with a Labour MP warning last week it will hit family breaks in the UK.
Emma Lewell wrote to Chancellor Rachel Reeves raising “serious” concerns about the proposals.
The South Shields MP said: “When households are already under pressure with the cost of living rises, this is demoralising and unaffordable.
“Families need a break. Taxing their break is a step too far.”
Major firms including Butlin’s, Hilton and Travelodge have responded to the proposals.
They say the plans would drain cash from local businesses and make the UK less competitive.
A Government spokesperson previously said it expect any new charges to be modest, and for mayors to consider the “right level for their area.”
The Sun has launched a campaign to show how the tax could affect YOU, to show your support go to our website at StopTheHolidayTax.uk.
