With regard to the new levy on overnight trips, we should remember that it is already the case hotels and B&Bs pay several taxes - VAT at 20 per cent, corporation tax, business rates and National Insurance.
Mims Davies MP Statement on Business Rates | Mims Davies
Therefore, I believe the Chancellor's decision to introduce a ‘holiday tax’ is yet one more tax being pushed by the Labour Government which will simply drive-up costs for already hard-pressed families and end up giving another kick to our already struggling British hospitality industry.
Now, hundreds of bosses of leading UK accommodation firms have called on the Labour Government to scrap this unfair tax. They rightly argue that the UK hospitality sector already contributes billions of pounds in tax through business rates, employment taxes and VAT, which at 20 per cent, is double the rate faced by the sector in countries such as France, Italy, Spain or Portugal.
On top of this, the Chancellor’s disastrous economic policies have put significant financial pressures on all businesses, including those operating in the tourism and hospitality sectors. The 2024 Autumn Budget resulted in a £3.4 billion tax bill for hospitality businesses; in the months since the Budget, 89,000 jobs in hospitality were lost.
The GDP impact from tourism in the UK totalled £147 billion and contributes at least four per cent to GDP across all regions and nations in the UK. It is absolutely vital the Labour Government works to support businesses who create jobs and growth, not just forces new taxes on them. The pips are already squeaking.
