Absence of tourist tax from Devolution White Paper “a relief” says UKHospitality

UKHospitality has said it was “very encouraging” not to see tourist tax powers included in the government’s Devolution White Paper.

The document outlines the government’s plans to widen and deepen devolution across England, providing mayors with unprecedented powers and funding.

But the white paper, which was published yesterday, does not encourage the introduction of tourist taxes, which a number of English councils are currently demanding to fund their tourism economies.

Kate Nicholls, chief executive of UKHospitality, said: “Hospitality is at the heart of our local communities and strengthening both local and regional government to improve services is positive. Better planning and licensing processes and improved transport systems in those areas will help businesses, tourism, customers and staff alike.

“The white paper has big ambitions and hospitality can be at the heart of delivering those ambitions through high street renewal, if it supported to do so.

“The biggest sigh of relief for hospitality businesses will be what was not included in the white paper – the absence of any new powers for local authorities to introduce a tourist tax.”

Only this week, the City of York council said it was actively lobbying for a tourist levy. This follows Manchester which became the first city in the UK to demand a tourist tax on visitors staying the night in April 2023 under the Accommodation Business Improvement District (ABID) model.

Liverpool is also reportedly in the process of voting on a new City Visitor Charge of £2, which could be introduced as early as next year.

But UKHospitality has voiced concerns that additional taxation could be damaging for the sector which is already struggling with rising costs.

Nicholls added: “That is very encouraging and a sign that the Government has listened to our concerns that such a tax would further burden struggling businesses and severely dent our competitiveness on the world stage.”