Room tax? Proposed by the new government plans

[whole diary]

[grahame]

From Sky News

Staycations to cost £100 more under government plans, Britons warned

Families face paying an extra £100 to holiday in the UK^▸ (United Kingdom) under government plans to introduce a new tax, a trade body has warned.

Ministers have set out plans to allow mayors and other local leaders in England to introduce an "overnight visitor levy" from next April.

Concerns have been raised this could cause 33,000 job losses and for the price of holidaying in the UK to rise.  UK Hospitality, which represents the industry, has written to the government, expressing its concerns about the plans and suggesting an alternative "Holiday Bonus" scheme that would reward local authorities with fixed revenue per visitor's night. It claims the idea would incentivise tourism, support hospitality and drive economic growth.

That refers to https://www.gov.uk/government/publications/rewiring-the-state-cabinet-statement/rewiring-the-state-cabinet-statement-html which includes a very long and potentially very plan setting agenda.  Deep in it

We will also give all strategic authorities the ability to introduce an Overnight Visitor Levy, with local leaders able to set out plans for how revenues will be invested by March 2028. 

In our travels over this spring / summer, we have become very used to paying a handful of Euros or other local currency per person per night as a local room tax - is this what the proposal is suggesting for the UK?

[ChrisB]

Looks like it - although at least Scotland already have this - Edinburgh has already implemented it for this summer's trade.

Maybe what's intended is that this tax is levied by mayors, not Government, and mayors get to spend it.

[grahame]

I have voted - in favour - in my own poll.  I would prefer there not to be a "hotel room tax" - however, it makes sense to help the local authorities pay for the extra support needed by all the extra people around from things as basic as clearing the litter bins and providing more road crossings for the crowds in the town.

In some towns such as Rostock and Zittau, the room tax also brings you things like a pass to use on local public transport or a discount at local attractions. And, yes, used in Rostock to catch the bus without having to work out how to buy a ticket.

[Chris from Nailsea]

I have voted, thinking about Edinburgh in particular (where I have stayed in hotels many times there, years ago).

I don't think there should be another 'hotel room tax', as it would only serve to reduce the attractiveness of such a tourist venue.  They already have to pay substantial amounts of business tax, after all.

Those peripheral benefits of discounts on various tourist attractions would be irrelevant to me: I was there for an overnight stay to attend two-day business meetings.

CfN^▸ (Chris from Nailsea, an administrator on this forum). 

[Red Squirrel]

Intrigued to know where the figure of £100 came from…

[Chris from Nailsea]

Sky News, inventing a headline? 

[eXPassenger]

Intrigued to know where the figure of £100 came from…

A family of 4 staying 13 nights at £2 per night each would cost £104.

[ChrisB]

yep, that is likely to be right

[Oxonhutch]

A family of 4 staying 13 nights at £2 per night each would cost £104.

That's a Body Tax, not a room tax.

[grahame]

A family of 4 staying 13 nights at £2 per night each would cost £104.

That's a Body Tax, not a room tax.

Indeed - my "bad" in the subject line.  It is per head per night where I have seen and paid it.

[TaplowGreen]

It's a firm "No" from me.

It would seem this Government is doing its level best to destroy the hospitality sector already, the last thing it needs is another regressive tax.

[stuving]

For comparison, the French taxe de séjour can be set by each commune within a nationally defined range. For hotels it is (this year) 0.5€ to 1.7€ for 3 star, from about half to double that for 1-5 star. It's paid via the hotel per night and per adult - none for under-18s. Things like camping, gites, and moorings are less. The list I've found does not have holiday rentals - my memory suggests it was similar to the 2 star rate.

It is still defined as for tourists, and while the range of places than can use it has been broadened it is still not available to everywhere. There are a lot of exclusions, e.g. for seasonal staff in resorts.

[grahame]

For comparison, the French taxe de séjour can be set by each commune within a nationally defined range. For hotels it is (this year) 0.5€ to 1.7€ for 3 star, from about half to double that for 1-5 star. It's paid via the hotel per night and per adult - none for under-18s. Things like camping, gites, and moorings are less. The list I've found does not have holiday rentals - my memory suggests it was similar to the 2 star rate.

It is still defined as for tourists, and while the range of places than can use it has been broadened it is still not available to everywhere. There are a lot of exclusions, e.g. for seasonal staff in resorts.

And here is the paperwork example for Zittau from last week ... 2 night stay, 2 adults 2x2=4 pages like this to complete



On a previous visit, I can recall being "let off" - "it doesn't apply" when I admitted to being there partly to see how they do public transport - "learning".  Ironically, I actually wanted to pay to get my local bus pass!

[Oxonhutch]

It's a firm "No" from me.

It would seem this Government is doing its level best to destroy the hospitality sector already, the last thing it needs is another regressive tax.

I don't doubt your views, but is it really regressive? Pay per head 'x-amount' is equal, and therefore is neither progressive nor regressive.

[Ralph Ayres]

I would object strongly; it feels very unwelcoming. When I spend time somewhere I'm already contributing to the local economy and employment whenever I spend any money. I will almost certainly be spending more per day on many things (eating out, entertainment, attractions) than the locals do.  Not my fault if the current tax regime doesn't pass that on effectively, and why charge overnight visitors but not those who just come for the day, except that they are an easy target?

On a related note, my local council gives reduced car park rates to us residents.  That does make me a little uncomfortable and feels Little Britain-ish ("local car parks for local people").  Don't we want to encourage people from elsewhere to come into the borough to spend their money here and help our local economy?  It also does nothing to encourage local residents to leave their car at home and use our pretty good public transport (outer W London) or walk/cycle for those local journeys.

PS Going somewhere on holiday in the UK^▸ (United Kingdom) isn't a staycation!  For me it's a perfectly normal holiday, abroad being very much the exception as I haven't run out of UK places I want to see for the first time or return to.