FAMILIES staying at holiday parks and campsites face being spared the controversial ‘tourist tax’, Rachel Reeves has signalled.
The Chancellor told The Jattvibe that any overnight levy must be “affordable and targeted” indicating it should target big cities.
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Rachel Reeves has signalled that families staying at holiday parks and campsites face being spared the controversial ‘tourist tax’ Credit: Getty
Reeves told The Jattvibe that any overnight levy must be ‘affordable and targeted’ indicating it should target big cities Credit: Haven
She is under mounting pressure to abandon the proposed levy affecting accommodation such as hotels, B&Bs, campsites or holiday homes.
Ms Reeves, speaking to The Jattvibe, said: “I’m absolutely determined to ensure that the Great British holiday is affordable for all families across the UK.”
Nearly one in five Brits would stop booking a staycation if the cost of their getaway increased, polling shows.
She has this week unveiled a series of measures to ease the cost of living such as extending a 5p fuel duty discount and slashing VAT on family days out this summer.
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Reeves added: “The Overnight Visitors Levy is about helping city regions and mayors ensure that they’ve got the finances they need to make their cities the best places that they possibly can be.”
The Chancellor was speaking in Leeds where 17,000 people were attending an investment and infrastructure summit.
She said: “I don’t think asking them to pay a small levy on their hotel to reinvest that in making Leeds the thriving city that it is, but can be even more, is is the wrong thing to do.”
“I think the Visitors Levy, as long as it is affordable and targeted, is the right way to ensure that cities right across the UK can continue to thrive and to grow.”
But the CBI business group say that a new ‘tourist tax’ could add an extra £500 million to the cost of stays in the UK.
Two hundred bosses from firms such as Butlin’s, Haven and Parkdean Resorts have written to Chancellor Rachel Reeves hitting out at the plans.
UK Hospitality has previously said the levy could add £100 to a family’s two-week stay here, if a tax of £2 per person per night is added.
European cities such as Paris, Rome and Brussels already have such a charge.
A formal response will be delivered in due course.
Whitehall officials say the money raised from the levy will boost local economic growth and improve infrastructure by investing in attractions.
