Reform UK has vowed to block Labour mayors from imposing the
holiday tax on families.
Business leaders have warned the tax will increase the cost of a
two-week holiday for a family of four by £100. Analysis of the
tax by UK Hospitality estimates as many as 33,000 jobs could
disappear in the hospitality trade and it could wipe £2 billion
from the economy.
Reform's Shadow Chancellor, , hit back at Andy for betraying working people who
are already struggling and accused him of being completely out of
touch.
The overnight visitors levy is currently imposed in Edinburgh and
will be shortly imposed in Cardiff.
Reform mayors have already announced they would not impose a
holiday tax. Tory Mayors in the West Midlands, West of England
and Cambridgeshire and Peterborough previously signed the Mayors'
Pledge letter calling for tourism taxes. Labour Mayors in London,
Liverpool, York and North Yorkshire, West Yorkshire, South
Yorkshire, East Midlands, and the West of England are currently
considering imposing it.
The tax will make the UK a less attractive destination for
tourism and also hit those who have to travel for work. Unlike
many continental tourist taxes, there will be no obligation for
mayors to reinvest these funds in making their destinations more
attractive to visitors. Instead, they will be spent on mayoral
vanity projects or general cost pressures.
A self-imposed 5% cap is unlikely to last for long: Once a new
tax exists, politicians are rarely able to resist the temptation
to increase it. A Reform Government will oppose the Overnight
Visitor Levy Bill and, if it passes, repeal it to stop local
authorities from levying an uncapped tax on overnight
stays.
It comes as Labour ministers consider a tax raid on holiday homes
used as short-term rentals. According to industry analysis, this
could cost the average holiday-let owner up to £3,000 per year.
This will be on top of any overnight visitor levy.
Reform's Shadow Chancellor, , said:
The Holiday Tax will be a disaster for working people. Families
are already struggling with rising taxes and prices - this is the
last thing they need.
"Unable to cut spending in Westminster, Burnham is asking mayors
to do his dirty work by increasing taxes themselves in a move
that will cost thousands of jobs in the hospitality trade.
"Andy Burnham is betraying the working people he claims to
represent. Reform will always put the British people first and
fight this cruel tax every step of the way.
"We are the only party who have vowed to reverse Rachel Reeves's
jobs tax for British workers, reform business rates and scrap
over-bearing regulation that has killed jobs.