Thank you for contacting me about the new levy on overnight trips.
It is already the case that hotels and B&Bs pay VAT at 20 per cent, corporation tax, business rates and National Insurance. I believe that the Chancellor's decision will drive up costs for hard-pressed families, and end up as another kick to British hospitality.
Hundreds of bosses of leading UK accommodation firms have called on the Government to scrap the tax. They rightly argue that the UK hospitality sector contributes billions of pounds in tax through business rates, employment taxes and VAT, which at 20 per cent, is double the rate faced in places such as France, Italy, Spain or Portugal.
On top of this, the Chancellor’s economic policies have put significant financial pressures on businesses, including those operating in the tourism and hospitality sectors. The 2024 Autumn Budget resulted in a £3.4 billion tax bill for hospitality businesses. In the months since the Budget, 89,000 jobs in hospitality were lost.
It is vital that the Government supports businesses who create jobs and growth, not forces new taxes on them.
Thank you again for taking the time to contact me.
