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Hospitality industry warns of job losses from England tourist levy plans

Industry groups estimate a 5% overnight levy could mean 33,000 job losses and a £2bn hit to the economy, while ministers say the funds would be reinvested locally.

Reported · Written up by our desk · Trade & Tariffs

British ministers’ plans to give mayors in England sweeping powers to impose an overnight visitor levy on holiday accommodation, including hotels and Airbnbs, have drawn backlash from the hospitality sector.

According to the Guardian Business, the scheme announced by Angela Rayner, the local government secretary, would allow mayors to set the tax without a cap on how much they can charge and with limited controls on how revenues are spent, with detailed mayoral plans expected in early 2028.

UKHospitality, the industry trade body, said a 5% overnight levy across England could result in 33,000 job losses and reduce the economy by £2bn, with tourism heavy regions such as the Lake District described as most at risk.

Rayner said the tax-raising powers are intended to help fund local communities, arguing mayors can choose to raise and reinvest money where it is needed most, while the hotel chain Premier Inn called the policy “hugely damaging” and urged ministers to avoid what it warned could be irreparable harm.

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