The chief executive of Butlin’s has slammed Rachel Reeves for introducing a ‘tax on holidays’ in her Budget today.
Jon Hendry Pickup has argued that “hospitality businesses like Butlin’s remain caught in the crossfire of the Chancellor’s tax and spend ideology”.
The chief executive was reacting to the ‘tourism tax’ which has been welcomed by a number of mayors across the country.
The Butlin’s chief said: “This Budget once again demonstrates that the government doesn’t appreciate the value private enterprise generates for this country.
“We’ve invested more than £50m over the last two years in our resorts, but hospitality businesses like Butlin’s remain caught in the crossfire of the Chancellor’s tax and spend ideology.
“Last year we had the tax on jobs that limited opportunities in our communities, especially for young people. Now we have a tax on holidays.
“These decisions do nothing to drive growth or jobs for working people who want careers in Skegness, Bognor Regis, or Minehead.”
The news that regional mayors were to be given powers to introduce a tax on overnight stays at hotels, holiday lets and B&Bs were revealed by the government yesterday afternoon.
The levy is to apply equally to UK citizens and foreign travellers on trips around the country
London mayor Sadiq Khan, Liverpool’s Steve Rotherham and Manchester’s Andy Burnham have all supported the new tax.
However the Conservative mayor of Teesside Ben Houchen has publicly spoken out against it.
The Ministry of Housing, Communities and Local Government has described the rate as modest and is still under review, according to the FT. The Sun reported it would be £2 per person, per night in London.
The announcement in the Budget comes after bosses at the likes of Accor, Marriott, Hilton, IHG and the owner of Premier Inn told the Chancellor in a letter last week that a tourism tac would risk “further damaging” hotel investment in the UK.
EasyJet chief executive Kenton Jarvis said earlier this week said the move would backfire.
A consultation on details of the measure will run until 18 February.
Sadiq Khan welcomes ‘great news for London’
Mayor of London Sadiq Khan said: “Giving mayors the powers to raise a tourist levy is great news for London.
“The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination.
“It also shows what can be done when ministers work closely with mayors to devolve more powers to cities and regions.
“As part of developing our plans for the levy we will work closely with the hospitality and tourism sectors to ensure it delivers the maximum benefits for London and our brilliant businesses.”
European cities such as Amsterdam, Barcelona, Milan, Venice and Paris already have a similar tax.
Tourism tax ‘only fair’
Liverpool City Region Mayor Steve Rotheram: “This is something I’ve been calling for since I was first elected back in 2017.
“For too long, cities like ours have been expected to compete on a global stage without the basic tools that other places take for granted.
“Cities like Barcelona and Paris raise tens of millions each year through similar schemes – money that goes straight back into improving the visitor experience and supporting the local people who keep those destinations thriving.
“Until now, we’ve had no such option. So I’m pleased that the government has listened and acted – giving areas like ours the powers we need to support and grow our economies in a sustainable way.
“Our visitor economy is worth more than £6bn a year and supports over 55,000 local jobs.
“A modest levy could raise up to £17m annually – money that would stay local and be reinvested in the things that make our region stand out: our world-class culture, iconic events, vibrant public spaces and the infrastructure that ties it all together.
“It’s only fair that those who enjoy everything our region has to offer play a small part in helping to sustain it.”
Overnight levy ‘must be proportionate’
Kay Buxton, chief executive of Marble Arch London BID, said: “We believe that the overnight levy must be proportionate, and not pose a threat to London’s visitor economy.
“The funding raised should be reinvested locally to improve conditions for visitors.
“Business input to the design and roll-out of a scheme for London will be vital and Marble Arch BID will work with our colleagues in neighbouring Westminster BIDs to represent our 17 hotel members, who between them provide over 3,300 hotel rooms, to influence the spending priorities of the mayor of London and make sure the levy is invested in projects and services that benefit the tourism sector.”