Reform UK has pledged to scrap Labour’s planned “holiday tax”, warning that it would punish families and destroy thousands of jobs across Britain’s hospitality industry.
The party will oppose the Overnight Visitor Levy Bill and repeal it if it becomes law, preventing mayors and local authorities from imposing an uncapped tax on stays in hotels, guesthouses and holiday lets.
Reform UK Shadow Chancellor Robert Jenrick described the levy as “a disaster for working people”.
“Families are already struggling with rising taxes and prices - this is the last thing they need”, he said.
Business leaders have warned that a 5% levy could add around £100 to the cost of a two-week holiday for a family of four. Analysis by Oxford Economics for UKHospitality estimates that the tax could cost as many as 33,000 jobs and wipe £2 billion from the economy.
Jenrick accused Prime Minister Andy Burnham of using regional mayors to raise taxes on Labour’s behalf.
“Unable to cut spending in Westminster, Burnham is asking mayors to do his dirty work by increasing taxes themselves in a move that will cost thousands of jobs in the hospitality trade”, he said.
“Andy Burnham is betraying the working people he claims to represent. Reform will always put the British people first and fight this cruel tax every step of the way.”
Labour mayors across England are considering imposing the levy, despite warnings that it would make Britain less attractive to tourists and increase costs for people travelling for work. Although Labour mayors have proposed a voluntary 5% ceiling, the legislation would allow the tax to remain uncapped.
Unlike many tourist taxes imposed elsewhere in Europe, there would be no requirement for mayors to reinvest the proceeds in improving local attractions or encouraging tourism.
Reform’s mayors have already confirmed that they will not introduce the charge.
The proposals come as Labour ministers reportedly consider a separate tax raid on holiday properties used as short-term rentals, which industry analysis suggests could cost the average owner £3,000 per year.
Jenrick added: “We are the only party who have vowed to reverse Rachel Reeves’s jobs tax for British workers, reform business rates and scrap over-bearing regulation that has killed jobs.”
The party will oppose the Overnight Visitor Levy Bill and repeal it if it becomes law, preventing mayors and local authorities from imposing an uncapped tax on stays in hotels, guesthouses and holiday lets.
Reform UK Shadow Chancellor Robert Jenrick described the levy as “a disaster for working people”.
“Families are already struggling with rising taxes and prices - this is the last thing they need”, he said.
Business leaders have warned that a 5% levy could add around £100 to the cost of a two-week holiday for a family of four. Analysis by Oxford Economics for UKHospitality estimates that the tax could cost as many as 33,000 jobs and wipe £2 billion from the economy.
Jenrick accused Prime Minister Andy Burnham of using regional mayors to raise taxes on Labour’s behalf.
“Unable to cut spending in Westminster, Burnham is asking mayors to do his dirty work by increasing taxes themselves in a move that will cost thousands of jobs in the hospitality trade”, he said.
“Andy Burnham is betraying the working people he claims to represent. Reform will always put the British people first and fight this cruel tax every step of the way.”
Labour mayors across England are considering imposing the levy, despite warnings that it would make Britain less attractive to tourists and increase costs for people travelling for work. Although Labour mayors have proposed a voluntary 5% ceiling, the legislation would allow the tax to remain uncapped.
Unlike many tourist taxes imposed elsewhere in Europe, there would be no requirement for mayors to reinvest the proceeds in improving local attractions or encouraging tourism.
Reform’s mayors have already confirmed that they will not introduce the charge.
The proposals come as Labour ministers reportedly consider a separate tax raid on holiday properties used as short-term rentals, which industry analysis suggests could cost the average owner £3,000 per year.
Jenrick added: “We are the only party who have vowed to reverse Rachel Reeves’s jobs tax for British workers, reform business rates and scrap over-bearing regulation that has killed jobs.”
