BURNHAM GOVERNMENT GRANTS MAYORS POWER TO LEVY OVERNIGHT VISITOR TAX

Andy Burnham's Government has given mayors and local leaders across England the power to introduce an "overnight visitor levy" from April 2027. The tax could cost families an additional £100 per holiday, according to warnings from the hospitality sector. UK Hospitality, the trade body representing the industry, has urged the Prime Minister to abandon the measure and adopt an alternative approach instead. Allen Simpson, Chief Executive of UK Hospitality, stated the levy would amount to a nationwide holiday tax during a cost-of-living crisis.

The trade body has proposed a "Holiday Bonus" scheme as an alternative, which would provide local authorities with fixed revenue per visitor's night rather than imposing a direct tax on holidaymakers. Simpson argued the levy could result in the loss of 33,000 jobs across the hospitality sector. He stated: "I am pro-devolution, but I am not in favour of an extra tax that will cost 33,000 jobs." Simpson called instead for central government revenues to be devolved to local authorities through the holiday bonus model, treating hospitality the same as other sectors.

In a separate announcement on Thursday, Burnham introduced a 20% cut to business rates for pubs, clubs and music venues across England from April, which he described as a "first step" to support businesses. The rate relief does not extend to hotels, restaurants or holiday parks. The overnight visitor levy represents a significant expansion of taxation powers previously offered only to select mayors, now being made available to every strategic authority in England.