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05
Nov
Ripon MP brands tourist tax plans ‘mad’
Skipton and Ripon MP Sir Julian Smith has renewed his attack on plans to introduce a tourist tax.
Legislation giving regional mayors the power to charge visitors up to 5% for overnight stays was introduced in Parliament yesterday (November 4).
York and North Yorkshire’s Labour mayor David Skaith is a keen advocate, saying the overnight visitor levy — more commonly known as a tourist tax — would be “a total gamechanger” by raising funds for initiatives such as transport and tourism.
But Conservative MP Sir Julian said he has serious concerns about the impact on rural tourism and local businesses.
He said:
“This is a mad plan by the government and the local Labour mayor and is another hammer blow on rural hospitality businesses.”
Impact on businesses
Sir Julian’s latest anti-tourist tax comments came after he received answers to written parliamentary questions on the matter.
He asked what assessment had been made of the impact of the levy on businesses and the rural economy in North Yorkshire; whether the government would assess the potential impact of the levy on rural areas more broadly; and he sought assurances that rural hospitality businesses, accommodation providers and tourist boards had been consulted to the same extent as their urban counterparts.
Sir Julian said the responses, which you can read here, “do little to reassure businesses across North Yorkshire and other rural areas”.
He added:
What is particularly worrying is that this would be an uncapped tax. There is nothing in the government's approach that appears to prevent local authorities from continually increasing the levy over time, creating uncertainty for businesses and making rural destinations less competitive.
Tourism supports thousands of jobs across our area, from hotels and B&Bs to pubs, restaurants and visitor attractions. The government should be backing these businesses, not creating new barriers that risk putting visitors off and damaging local economies.
Imposed by 2028?
The government hopes legislation for the overnight visitor levy will be in place by March 2028.
It would enable the mayor to impose an additional charge on holidaymakers staying in hotels, guesthouses and other qualifying accommodation.
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.
Mr Skaith is among 10 regional mayors who have committed to keeping any visitor levy at 5% or below.
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.
Visitor levies already operate in destinations including Edinburgh, Manchester, Paris and Barcelona.
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