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15
Sept
Mayor vows 5% tourist tax cap for North Yorkshire
The Mayor of York and North Yorkshire has pledged to cap a tourist tax at 5%, if the levy is introduced in the region.
The government announced plans to give mayors the power to introduce an overnight charge on room bookings on Thursday (September 10).
It said any levy would have to be charged as a percentage of the cost of accommodation, rather than as a flat fee, to protect budget accommodation providers, such as caravan parks and camping sites.
The move is divisive: Harrogate hoteliers rejected creating a similar local scheme this year amid concerns it could deter visitors.
At a York and North Yorkshire Combined Authority overview and scrutiny meeting today (September 15), David Skaith, Labour Mayor of York and North Yorkshire, vowed he would not go above 5% if any levy is implemented.
It comes as Labour mayors in 10 city regions said they would voluntarily limit the charge if they do apply it.
Mr Skaith said:
As Labour mayors, we have come out and said that we are not going to go above that 5%. I think a percentage rate is probably a fairer way of delivering it.
But, as I said, all things are very much on the table as we go through this process.
The move comes as the Labour mayor has been a strong proponent for the introduction of a tourist levy, which he has repeatedly said would be a “game changer” that could raise millions of pounds to boost tourism in the region.
Mr Skaith said he will continue to meet with the region’s tourism and hospitality groups as he continues to develop plans for an overnight charge.
Flat rate hopes dashed
A report commissioned by Mr Skaith last week said a £1-a-night room charge could raise £26 million a year.
The report recommended a flat fee for North Yorkshire, which would include exemptions for low-cost stays, such as campsites.
However, the government announcement last week appeared to dash hopes for a £1-a-night rate after ministers said they preferred a percentage charge.
David Skaith with the tourist tax report he commissioned.
Under the plans, mayors will be able to decide whether to introduce a levy and how the revenue should be invested in their area, in consultation with their residents and local businesses.
Angela Rayner, Secretary of State for Housing, Communities and Local Government, said:
This measure will give mayors the choice to raise and reinvest funding where it’s needed most. It’ll help support the local services, public spaces and attractions that both residents and visitors rely on, with decisions taken by people who know their area best.
The government said the levy was the “latest step in fiscal devolution” which will bring England in line with other countries where similar levies are in place, including in many cities in Germany, the United States, Italy, Netherlands, and Canada.
Mayors will have the flexibility to offer exemptions – such as for campsites.
Temporary accommodation and shelters or refuges would not be subject to the levy.
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