There are “no plans” to introduce a tourism tax in England, Downing Street said, amid claims that Angela Rayner’s efforts to bring one in were rebuffed by the Treasury.
The Deputy Prime Minister has been pushing for councils to be allowed to introduce a tax on tourism in their areas as part of the Government’s devolution agenda, according to several media reports.
Rachel Reeves, however, is said to have blocked the move for fear it would reduce revenues for businesses struggling with higher national insurance contributions and a rise in the minimum wage already brought in by the Government.
The Prime Minister’s official spokesman would not be drawn into saying whether there were plans for such a tax.
“We have previously said there’s no plans to introduce a tourism tax in England,” the spokesman said.
He added: “Places can already choose to introduce a levy on overnight stays through working with their local tourism sector, using the accommodation Business Improvement District model.
“Tourism obviously plays an important role in the UK’s economy. Inbound tourism is the UK’s third largest service export.
“The UK is the seventh most-visited country in the world, and we’re committed to continuing to support the sector.”
Pressed again whether a tourism tax had been shelved after an intervention from the Treasury, the spokesman said: “Well, there’s no plans to introduce it.”
Chancellor Rachel Reeves earlier sidestepped a question about Ms Rayner’s call for a tourist tax.
Asked for her response, Ms Reeves said she had made decisions on tax in last year’s “once-in-a-generation budget” which was intended to “fix the mess” left by the Conservatives.
She added: “We’ll have another budget later this year, and I’ll be setting out our tax policy there.”
A similar levy already exists in Scotland, and the Welsh Government is also in the process of introducing a tourism tax.
Tourists staying in countries across Europe are required to pay local taxes aimed at offsetting the impact of large numbers of visitors.
