Ministers face backlash from hospitality industry over ‘tourist tax’ plans
News Source
•Thu, 10 Sep 2026 18:14:53 GMT
📰 What Happened
UK ministers plan to let mayors in England add a "tourist tax" on hotels and Airbnbs. Local government secretary Angela Rayner announced the plan on Thursday.
Mayors could set the rate with no cap and few limits on how they spend the money. They would set out their plans in early 2028.
Hotel groups reacted with anger, saying the tax could cost jobs.
🔍 The Backstory
The UK has no national tourist tax, though Britons pay one when they travel abroad. Local councils face a funding crisis, so leaders want new income.
UKHospitality says a 5 percent levy could cost 33,000 jobs and £2bn. The owner of Premier Inn called the plan "hugely damaging".
Areas that rely on tourism, such as the Lake District, fear visitors will go elsewhere. Some mayors support the idea.
🎯 Why It Matters
The tax could raise the price of a UK holiday. It could also pay for local services, but may put some hotel jobs at risk.
UK ministers plan to let mayors in England add a "tourist tax" on hotels and Airbnbs. Local government secretary Angela Rayner announced the plan on Thursday.
Mayors could set the rate with no cap and few limits on how they spend the money. They would set out their plans in early 2028.
Hotel groups reacted with anger, saying the tax could cost jobs.
The UK has no national tourist tax, though Britons pay one when they travel abroad. Local councils face a funding crisis, so leaders want new income.
UKHospitality says a 5 percent levy could cost 33,000 jobs and £2bn. The owner of Premier Inn called the plan "hugely damaging".
Areas that rely on tourism, such as the Lake District, fear visitors will go elsewhere. Some mayors support the idea.
The tax could raise the price of a UK holiday. It could also pay for local services, but may put some hotel jobs at risk.