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04
Nov
Tourist tax moves closer as North Yorkshire visitors face prospect of 5% hotel bill increase
A tourist tax in North Yorkshire moved a step closer today (November 4) after legislation giving regional mayors the power to charge overnight visitors was introduced in Parliament.
The proposed visitor levy could add up to 5% to accommodation bills, meaning holidaymakers staying in hotels, guesthouses and other qualifying accommodation could face an additional charge.
York and North Yorkshire mayor David Skaith is a keen supporter of the measure and has pledged to introduce a levy in the region, arguing it would provide a new source of funding for better public transport, improved visitor facilities and investment in towns and villages.
But the proposals have attracted opposition from some local politicians and accommodation businesses, which fear an additional charge could make North Yorkshire less attractive to visitors and place further pressure on smaller operators.
The government hopes the legislation will be in place by March 2028.
Mr Skaith 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.
'Giving mayors choice'
Mr Skaith is among 10 regional mayors who have committed to keeping any visitor levy at 5% or below.
The proposals would give mayors the power to determine the rate and design of a local scheme, rather than imposing a single national charge.
The Bill also sets out how decisions would be made, which visitors and accommodation providers would be protected, and how the system would be enforced.
Housing, Communities and Local Government Secretary Angela Rayner said:
Every pound raised through these levies will stay in the local area. Whether that’s better transport, thriving high streets, or more attractions that keep visitors coming back.
This is about giving mayors and local leaders the choice to invest back into what matters most to local people, while protecting lower-cost stays and making sure businesses have their say.
Tory opposition
However, the plans have faced criticism from Conservative politicians in the region.
Sir Julian Smith, MP for Skipton and Ripon, has described the proposed levy as "mad".
Andrew Jones, the former Conservative MP for Harrogate and Knaresborough, recently told the Stray Ferret:
Labour politicians are spending all their time looking for more ways to increase tax. We want to encourage people to come to our county, and making things more expensive isn't the right answer.
Under the proposed system, areas wishing to introduce a levy will have to publish plans setting out their proposed rates, thresholds, exemptions and how the money will be spent.
They will also have to produce an impact assessment and hold a local consultation.
National exemptions are proposed for student accommodation, care homes, shelters and stays of more than 28 days. Mayors will also have the power to introduce additional local exemptions.
Although visitor levies are already operating in destinations including Edinburgh, Manchester, Paris and Barcelona, the proposed legislation would establish a framework for similar schemes across England.
For North Yorkshire's tourism industry, the introduction of the Bill brings the prospect of an overnight charge closer. However, the precise rate, exemptions and arrangements for spending the money will still need to be determined locally.
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