New tax plan might make your next UK holiday cost more than expected
English local authorities could soon charge extra fees for hotel stays just like many European countries do. The government looks into giving councils power to add small charges for overnight visitors
The UK government considers letting English councils add tourist fees to hotel stays‚ following Scotlandʼs recent move towards visitor charges (a practice thats already common across Europe)
Angela Rayner‚ the Deputy PM works on a white-paper that might give Englandʼs 317 local authorities power to charge extra £1-2 per person for overnight stays; while Treasury shows some push-back against the idea. A source close to planning says: “Individual ministers support it – its just a matter of time“
Local mayors push hard for these new powers: they see it as a first-step to manage their own money better. Research done about 5 years ago by Institute for Fiscal Studies shows that even a small £1 fee could bring in £420-million yearly (which is quite a bit for local budgets)
Some places already found a work-around to collect similar fees: Greater Manchester‚ Merseyside and other spots use something called Business Improvement Districts. Places like Blackpool‚ Dorset and Great Yarmouth joined this scheme too
- Edinburgh plans to start charging in about 2 years
- Wales wants to bring in their own rules by Dec-2024
- Scotland already passed laws for this earlier in 2024
The plan includes sharing money between busy tourist spots and less-visited areas – like central London helping out its outer areas. Many European countries (including Italy; Greece and Germany) already charge these kinds of fees‚ showing how normal this practice is elsewhere
