Tourism Leverage Consultation Sparks £2/Night Stay Tax Backlash from UK Mayors and Industry

Tourism industry leaders urge Chancellor Rachel Reeves to scrap proposed overnight visitor levies, warning they will add over £100 to a family break and depress spending, jobs, and communities reliant on tourism. More than 200 firms, including Butlin’s, Whitbread, Travelodge, Hilton, and InterContinental, signed a letter citing a £2-per-person-per-night charge, which would increase costs for room bookings and local businesses, particularly in coastal areas. The Treasury consultation on granting mayoral authorities in England the power to impose a visitor levy is scheduled to close next week. The Scottish and Welsh governments have already implemented similar measures, with public backlash in some areas. The WTTC and UKHospitality argue that such levies add complexity, discourage investment, and reduce competitiveness, amid already rising business rates, energy costs, and labor expenses making the UK the 113rd most expensive destination. The government maintains the levy would support local investment in transport, regeneration, and cultural assets, with mayors determining modest, area-appropriate rates.