Ministers Grant Mayors Power to Levy Tourist Tax Amid Industry Warnings

New powers will allow mayors across England to impose a "tourist tax" on accommodation like hotels and Airbnbs, a move welcomed by some think tanks for fiscal devolution but met with strong opposition from the hospitality industry. The uncapped levy, announced by Local Government Secretary Angela Rayner, aims to give local areas more autonomy over funding and potentially allow communities to retain more benefits from tourism.

However, industry leaders warn that the tax could lead to job losses and significantly increase costs for families holidaying in England, potentially causing "irreparable harm" to the sector. Concerns have been raised that without a cap, the tax could become a substantial financial burden, discouraging both domestic and international tourism. This development comes as the UK grapples with a broader cost of living crisis, with various sectors experiencing increased financial pressures.