Latest news with #tourismtax
The Independent
22-07-2025
- Business
- The Independent
No plans for England tourism tax, No 10 insists, after claims Rayner backed one
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.
Yahoo
22-07-2025
- Business
- Yahoo
No plans for England tourism tax, No 10 insists, after claims Rayner backed one
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.
Times
22-07-2025
- Business
- Times
Angela Rayner blocked from allowing councils to tax tourists
Angela Rayner pushed for councils to be given powers to tax tourists as part of the government's devolution agenda but was rebuffed by the Treasury. The deputy prime minister wanted to give directly elected mayors the ability to charge their own taxes on hotel stays as part of the government's Devolution Bill, published earlier this month. However, the move, first reported by The Daily Telegraph, was rebuffed by Rachel Reeves, the chancellor, amid fears that it could reduce revenues for businesses already struggling with higher national insurance taxes and rises in the minimum wage. A spokesman for Rayner's department did not deny the rift, saying only that there were 'currently no plans to introduce a tourism tax in England'. Many European cities, including Barcelona, Lisbon, Venice and Amsterdam, charge tourists a tax on the cost of hotel rooms and private rentals, either as a flat rate or percentage of the room charge. Cities in Scotland have their own tax-raising powers. Visitors to Edinburgh and Glasgow will pay 5 per cent on hotel stays from July next year and January 2027 respectively. Andy Burnham, the Labour mayor of Greater Manchester, is among the local leaders pushing to be allowed to charge more in England, while Sir Sadiq Khan, the London mayor, has suggested he would be open to a tourist tax in the capital that would provide more revenue for local projects. Last month, both mayors signed a joint letter with their counterparts in Liverpool, the North East, West Yorkshire and the West Midlands, calling for 'Barcelona-style' tourist tax. • The Sunday Times view: Business is an easy target for tax. Ministers should resist News of the disagreement over a tourism levy came as polling suggested the public would support a new tax regime to attract wealthy foreigners to the UK, provided they use private schools and private healthcare. In total, 67 per cent of people — and 69 per cent of Labour voters — supported special tax treatment for high net-worth investors, according to a report published on Tuesday. A majority of the population said they believed Britain should allow more of the world's wealthiest investors into the country, but only if they make a contribution to the economy and its public finances. Some 66 per cent thought part of that contract should be that foreign investors are banned from using the NHS or the state education system. The survey results were contained in a report jointly published by Onward, a think tank set up by the former Conservative MP Sir Simon Clarke, and the Adam Smith Institute, the free-market campaign group. Called The Prosperity Package, the report calls for a new tax regime for global investors to help stop the exodus of wealth from the UK. Britain is estimated to have lost a quarter of its billionaires over the past two years and is expected to lose a record 16,500 millionaires this year, according to research published over the past month. The acceleration in wealth migration since Labour came to power follows Reeves's decision to abolish the non-domiciled tax regime and apply inheritance tax to family businesses and farms. The old non-dom regime allowed wealthy foreigners who had lived in Britain for more than seven years to avoid paying UK taxes on their worldwide earnings in exchange for a fee starting at £30,000 a year. In its place, Labour introduced a new residence-based system that makes wealthy foreigners pay UK tax on their global earnings after living in the UK for four years, while their worldwide assets become subject to UK inheritance tax after ten years. • Surge in wealthy using insurance to beat inheritance tax hit The authors of The Prosperity Package report suggest an alternative that they believe would boost growth and increase tax revenue by attracting global investors to the UK. Under their scheme, wealthy foreigners would be allowed to move to the UK and keep their global assets, income and gains away from the taxman for 15 years in exchange for an annual fee of £300,000. In addition, applicants would be required to invest a minimum of £3 million into one of eight government-designated 'Industrial Strategy Sectors', delivering cash into areas such as clean energy, the life sciences, and digital technologies. Those who apply to the scheme would also have 'no recourse to public funds' and be required to take out private health insurance and educate their children in the private school system. When the proposed scheme was put to a representative sample of 2,000 Britons, it was supported by 53 per cent of respondents and opposed by only 15 per cent. • Non-dom crackdown 'could leave £4bn hole in public finances' The report says that modelling of the regime suggests that if implemented and taken up by 1,000 people, it would give a £30 billion boost to the economy after ten years and raise a cumulative £13 billion in extra tax revenues. The proposal has similarities to the previous Conservative government's Tier 1 investor visa scheme, which required applicants to invest a minimum of £2 million in either UK government bonds, British shares or loans to UK-registered companies. That scheme was abolished in 2022 after being criticised for being open to abuse by allowing foreigners with questionable sources of wealth to gain residency. The authors of The Prosperity Package report say their proposal would raise more tax revenue and they propose stricter checks on applicants. • Why the super-rich are leaving Britain Maxwell Marlow, of the Adam Smith Institute and author of the report, said: 'The public are clear — they want fairness, not a fortress. If the wealthy contribute significantly and don't draw on the state, most voters are open to their investment. Our proposal meets this test and puts Britain back in the race to attract global capital.' The plan has already attracted some cross-party support. Lord Mendelsohn, the Labour peer and the party's former business and trade spokesman in the House of Lords, said: 'I do not agree with some colleagues that we should wave goodbye to the wealthy; we should be doing whatever we can to welcome them back, and new investors, entrepreneurs, and high spenders to our shores. 'Crucially though, they must contribute to Britain, rather than just using it.'
Telegraph
21-07-2025
- Business
- Telegraph
Rayner demands tourist tax in clash with Reeves
Angela Rayner is pushing for councils to be given new powers to tax tourists, despite opposition from Rachel Reeves. The Deputy Prime Minister has argued that councils should be given the power to tax visitors' hotel stays, amid a scramble by cash-strapped local authorities to cash in on booming demand. It comes as a record 43 million foreign visits to the UK are expected this year, on top of British families travelling within the country. Treasury officials are opposed to a tourism tax amid fears it would be a fresh blow for hospitality businesses already hit by Labour's tax raids in last year's Budget, as well as snuffing out a post-Covid revival in visits. The row aligns Ms Rayner with powerful regional mayors including Sir Sadiq Khan and Andy Burnham. It marks her latest clash with the Chancellor after previous disagreements over how to plug a multi-billion-pound fiscal black hole. A senior government source said devolving more power to local mayors was central to Ms Rayner's plan for economic growth, but Ms Reeves was looking for 'quick wins' and did not want to force through constitutional changes that would take time and could backfire. Councils are lobbying the Treasury to be allowed to charge their own taxes, a power that is currently reserved by Westminster. Ms Rayner is understood to have pushed for the power to charge tourist taxes to be included in the Government's Devolution Bill, which was published earlier this month. But the Chancellor has ruled out further fiscal devolution, believing that Ms Rayner's workers' rights law and the increase in employers' National Insurance contributions last year have already driven up costs on businesses. Many European cities, including Barcelona, Lisbon, Venice and Amsterdam, charge tourists a tax on the cost of hotel rooms and private rentals, either as a flat rate or percentage of the room charge. Cities in Wales and Scotland have their own tax-raising powers. Visitors to Edinburgh and Glasgow will pay five per cent on hotel stays from 2026 and 2027 respectively, while hotels in Wales will soon charge tourists £1.30 per night. Liverpool and Manchester charge tourists a fee per night, but the current powers are limited to small 'business improvement districts' and cannot be levied across large areas. However, other councils in England have halted plans for limited tourist taxe s after opposition from hotel owners. In Dorset, some businesses said the tax could cost them £600,000 a year, amid other pressures on profitability. Hoteliers have warned that holidaymakers will choose to stay elsewhere because of the charge. Kate Nicholls, the chief executive of the industry group UK Hospitality, has said England already ranks poorly compared to its European neighbours for 'tourism competitiveness' because of the comparatively high rate of VAT. Any tax raid would also put a recovery in visitor numbers at risk. VisitBritain, the country's tourism agency, expects a record 43.4 million overseas visits this year, up 5 per cent on 2024. Foreign tourists are expected to boost the economy by £33.7 billion. Andy Burnham, the Labour Mayor of Greater Manchester, is among the local leaders pushing to be allowed to charge more in England, while Sir Sadiq, the London Mayor, has suggested he would be open to a tourist tax in the capital that would provide more revenue for local projects. Last month, both mayors signed a joint letter with their counterparts in Liverpool, the North East, West Yorkshire and the West Midlands, demanding a 'Barcelona-style' tourist tax. Tourists don't mind paying, says Khan Sir Sadiq then told the Jimmy's Jobs podcast that tourists 'don't mind' paying a 'small levy' in European cities. He said: 'We could spend more money improving the public realm, which would encourage more tourists to come but also improve the quality of life for residents in London.' Sir Sadiq's team is understood to be privately making a case for the tax to Whitehall departments. Council bosses in Britain say they could raise an extra £209m across the country by charging visitors £2 a night, and are hoping Ms Rayner will make the case more forcefully to the Treasury. A report commissioned by the County Councils Network, published last week, found that new taxes could be 'transformational' for councils, and argued that local leaders should also be able to retain a portion of stamp duty revenue and income tax. The group said the policy would be a 'win-win for both central and local government', but would likely create a further black hole for Ms Reeves at her autumn Budget. Ahead of the publication of the Devolution Bill, Ms Rayner told MPs she wanted to see 'more push' for councils to have their own tax-raising powers, and that it was 'deeply disrespectful' for Whitehall to tell local government leaders how to spend their budgets. 'I like to think if you actually empower local leaders [...] my style of leadership is that you get the best outcomes from that,' she said. However, The Telegraph understands that her argument has been poorly received by Ms Reeves, who is sceptical of fiscal devolution. The two women have repeatedly clashed on tax policy this year, including when a memo by Ms Rayner containing a series of tax-raising suggestions was leaked to The Telegraph. The Chancellor has been warned by hospitality groups that further taxes would risk making their businesses unprofitable, after a year of higher taxes under Labour. A source close to the discussions said Ms Rayner had 'lost, short term' on local taxes, but that she could return to the issue later in this parliament. As Secretary of State for Housing, Communities and Local Government, Ms Rayner is responsible for the Government's policy on councils, but cannot make decisions on tax. Government sources played down the idea that Ms Reeves and Ms Rayner were in conflict over the issue, but did not deny that they disagreed about tourist taxes. Mel Stride, the shadow chancellor, told The Telegraph: 'Labour can't help themselves – it's always tax, tax, tax. 'Whether it's Angela Rayner or Rachel Reeves, the instinct is always the same – more taxes. 'First a £25 billion jobs tax, now threats of a tourist tax that would hit hospitality hard.' Pressure on Starmer to cut tax It comes as Sir Keir Starmer was on Monday urged by a senior Labour MP to deliver a 'big, bold, working class tax cut' after a year in Downing Street. Liam Byrne suggested to the Prime Minister during a session of Parliament's liaison committee that he could 'tweak up' capital gains tax to allow for tax cuts for workers. Sir Keir declined to commit to any tax changes, saying: 'I'm not going to be tempted to start speculating on what might or might not be in the Budget. It's going to come in the autumn.' The Labour Government has opened the door to increasing the state pension age by formally launching a review into the level at which it is set. The state pension age is currently 66 and is already poised to rise to 67 between 2026 and 2028. The Government is legally required to carry out a review by 2029. Whitehall insiders played down the prospect of changes being announced imminently, suggesting it was 'highly unlikely' one would be unveiled before the 2029 general election.
CTV News
16-07-2025
- Business
- CTV News
Kingsville says no to municipal accommodation tax
A municipal accommodation tax (MAT) will not be coming to Kingsville, for now at least. Administration presented a report to council Monday night, recommending the town inform Tourism Windsor Essex Pelee Island (TWEPI) that they would not be moving forward with a MAT. Over the course of the spring, TWEPI visited each municipality pitching the idea of implementing a MAT on short-term rentals (STRs) and hotels. The revenue, brought in by visitors, would be split 50/50 between the municipality and TWEPI. Currently, Windsor charges a MAT at six per cent. In their report, Kingsville administration cited concerns over unknown factors, such as the full cost of administering the program, enforcement responsibilities, and lack of clarity surrounding how TWEPI will use the funds for the town. TWEPI suggested that the City of Windsor administer the program, however administration was concerned that there was no certainty on the fees that Windsor would charge for the service, and no confirmation about who would take enforcement action against STRs that do not remit the tax revenue. Resident Tony spoke at the meeting and said he rents out his cottage and was against the implementation of the MAT. 'Let's not add to the problem, more costs to the tourism industry, particularly in the form of a new MAT will only drive visitors to more affordable areas,' he said. Resident Les said he previously lived in Banff for 22 years and served on a tourism council. He said he saw firsthand how a MAT could be beneficial and asked council to reconsider at a later date. 'When tourism numbers are down, there's never been a more important time to consider finding other streams of revenue to try to help us promote Kingsville as a destination,' he said. Council heard that public consultations were held and sentiment was overwhelmingly opposed to implementing a MAT. Administration said it does not believe the revenue-share model proposed by TWEPI is the only option, or perhaps the best option, for Kingsville. Councillor Sheri Lowrie joined other councillors who weren't completely against the tax but wanted to explore it at a later time. 'There's just too many unknowns, too many unanswered questions, so again I just come back to at this time,' Lowrie said. 'I hope to see something come back in the future when we're possibly ready, but we have to let the short-term rentals roll out, let's let that happen, let's grow tourism, and then see if there's an appetite for this later.' LaSalle, Tecumseh , Essex , Amherstburg , Lakeshore and Leamington have not yet decided if they will implement a MAT as they await reports from their staff. TWEPI is asking to be informed of decisions by Aug. 31, 2025. - Written by Dustin Coffman/AM800 News.
