Subscribe to trusted local news
In a time of both misinformation and too much information, quality journalism is more crucial than ever. By subscribing, you can help us get the story right.
- Subscription costs less than £1 a week with an annual plan.
Already a subscriber? Log in here.
09
Feb
Businesses give resounding ‘no’ to Labour mayor’s plans for tourist tax
Businesses in North Yorkshire have delivered a resounding ‘no’ to plans by Labour mayor David Skaith to introduce a tourist tax.
Chancellor Rachel Reeves is expected to give regional mayors powers to introduce an overnight visitor levy when a consultation on the proposal ends on February 18.
York and North Yorkshire mayor Mr Skaith has said a £1-per-room, per-night charge on all overnight accommodation, including yurts and bed and breakfasts, would be a “total game changer” that could generate more than £50 million a year.
But 71% of businesses were against the idea in a consultation run by Conservative-controlled North Yorkshire Council.
Announcing the consultation responses today (February 9), the council said that of 270 businesses that expressed a clear view, 71% opposed the introduction of a visitor levy. A total of 18% supported it and 11% were neutral.
The council said businesses feared the move could discourage overnight stays or shorten trips, particularly among visitors and families who have tighter financial budgets.
There are also particular concerns about the impact of the levy in Harrogate district where hoteliers want to bring in a separate Accommodation BID that could see visitors to the town’s largest hotels subject to a separate overnight tax.
Tory Councillor Mark Crane said in his proposed consultation response to Ms Reeves the responses “highlight significant concerns over administrative burdens, potential declines in bookings due to price increases, and risks to competitiveness”.
Cllr Crane said the levy could particularly hit the number of ‘staycationers’ who form the majority of the North Yorkshire visitors.
He added:
I would strongly urge you to listen carefully to the concerns being raised by businesses, which emphasise that this measure would impose additional financial burdens on our tourism sector.
Businesses across the full range from luxury hotels attracting international visitors to budget self-catering and caravan accommodation serving domestic families are already under extreme pressure from rising VAT, business rates, energy costs, and wage increases. A levy would add further strain, regardless of price point or market segment, potentially reducing competitiveness and overnight stays.
Would a tourist tax prevent people booking hotels to visit places like Fountains Abbey?
'Double taxation' fears in Harrogate
Cllr Crane added there was “additional complexity” in the Harrogate district due to the prospect of two tourist levies. “This could result in double taxation for operators, increasing the risk of price rises, reduced bookings, or business closures,” he said.
Businesses in York, where the mayor is based, showed “moderate support” for the idea, said Cllr Crane, but in rural North Yorkshire, “opposition is strong and widespread among accommodation providers”.
Tourism is worth more than £4 billion to North Yorkshire. A total of 32.2 million people visited in 2024, which was an increase of 3.8 per cent on 2023.
Lilla Bathurst, manager of Ripon Business Improvement District, said in a letter to city businesses last week about Mr Skaith’s proposed levy:
“At this stage I feel there is still very little clarity on how this tax will work – there is no definite scope for what businesses would need to charge the levy and how they would charge it or what the enforcement would be.”
0