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13
Nov
Tourist tax could turn hotels and B&Bs into unpaid tax collectors, councillor claims
A North Yorkshire councillor has warned a proposed tourist tax could turn hotels and B&Bs into unpaid tax collectors and risk driving visitors away from the county.
Harrogate Green Party councillor Mike Schofield has called on York and North Yorkshire Mayor David Skaith to publish a full assessment of the costs and economic impact of introducing an overnight visitor levy.
His concerns come as plans for the charge move a step closer following the introduction of the Visitor Levy Bill in Parliament.
Mr Skaith has confirmed he intends to introduce the levy, describing it as a potential “total gamechanger” for the region.
He is among 10 regional mayors who have committed to keeping any charge at five per cent or below.
Cllr Michael Schofield at The Shepherd's Dog pub.
However, Cllr Schofield, a former publican who represents the Harlow and St Georges division, has questioned how much money the scheme would generate once the costs of collecting the tax are taken into account.
He said:
Hotels and B&Bs are there to welcome visitors, not act as unpaid tax collectors for the authorities.
Someone will have to calculate the charges, maintain records and submit returns. That all takes time and money, particularly for smaller businesses.
We hear plenty about how much this tax could raise, but very little about how much it will actually cost to collect.
If those costs are passed on to the hospitality sector, we could end up with a scheme that looks good on paper because businesses are picking up the tab.
The councillor also raised concerns that visitors could choose neighbouring destinations where no equivalent charge applies.
He said:
Visitors have choices. As North Yorkshire Council has already pointed out, if people can stay elsewhere without paying the charge, we need to understand what that means across the board.
Cllr Schofield stressed that he was not opposed in principle to visitors contributing towards local infrastructure.
He has previously suggested a modest flat-rate charge of around £1 per night might be acceptable, but believes a percentage-based system raises questions about affordability and fairness.
Harrogate town centre.
He also questioned whether North Yorkshire residents already paying council tax would face additional charges when holidaying within their own county.
The councillor wants a detailed cost-benefit analysis covering administration, the impact on visitor numbers and spending, and the net revenue available for investment.
He said:
We need to be sure that it will actually benefit our communities once everyone’s paid the price of collecting it.
Under the government’s proposals, the levy would be calculated as a percentage of accommodation costs, meaning visitors staying in cheaper accommodation would pay less.
Mr Skaith says the money raised could help fund more regular buses, improvements to public spaces and town centres, and initiatives to attract further visitors and investment.
Mayor David Skaith talking to businesses at the Crown Hotel in Harrogate about his plans for a visitor levy in York and North Yorkshire
Speaking last week after the bill was introduced in Parliament, the mayor said:
We’re home to historic towns and cities, two of the UK’s best National Parks and a coastline brimming with character.
There’s something for everyone, and we welcome more than 40 million visitors every year. That’s why an Overnight Visitor Levy will be a total gamechanger for our county.
Investing in York and North Yorkshire’s cities, towns and villages to make them a better place to visit, and to live in, is at the heart of why I will be introducing a Levy in our county.
The mayor has pledged to work with residents and businesses on how the charge would operate.
The legislation must pass through Parliament before the new powers can be introduced.
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