Labour are addicted to taxes - now Rachel Reeves is set for yet another cash grab
Labour's proposed holiday tax is another blow to an already hammered hospitality sector and will result in increased costs, job losses and closed businesses. We already know that taxing Brits until they scream is in the DNA of this government and its MPs - the last two Budgets speak for themselves with Chancellor Rachel Reeves finding sneaky and not so sneaky ways of getting more cash out of British workers and businesses.
And if you were in any doubt about Labour's tax raising obsession, the messages revealed last week between disgraced Labour peer Peter Mandelson and senior Labour politician Pat McFadden lay bare the mindset of the party's MPs. The cabinet minister complained to Mandelson that in meetings colleagues just wanted to know "who can we tax in order to pay benefits to others".
Quite simply, Labour is addicted to raising taxes. Despite significant lobbying from the hospitality sector, last month's King's Speech outlined the Government's future legislature plans, and contained measures that would see the feared holiday tax implemented.
The move is especially nasty as there have been past commitments in the House of Commons from ministers that the government would not introduce such a tax.Strip it down and this levy is no more than a penalty on pleasure that will have to be paid by already hard pressed Brits who just want to holiday on these shores as opposed to travelling overseas. It is astounding that a government of any political colour or sense would think this is a fair and just tax as it is clear to see it would only deter people from staying in Britain when deciding to take their annual break or have a weekend away somewhere.
Supporters of the tax are keen to point out that the other European countries and cities charge a similar tax on tourists, but that argument is as weak as the Prime Minister's backbone - we should be doing everything possible to make this country as attractive as possible for people to visit or stay in - not trying to fleece them for wanting to do so.
The wheels are already in motion outside of England - in Scotland visitors to Edinburgh will face a 5% charge for staying in the city from next month - handily capitalising on the hundreds of thousands who hit the city for the fringe festival in August.
And as of April 2027, authorities in Wales will be able to impose a charge of £1.30 per person, per night.
The proposed legislation in the King's Speech would give local mayors and councils in England the legal right to charge visitors with an "overnight levy" to stay in a town or city. Mayors argue that the money raised would be used to support local tourism or to help boost public services elsewhere in the area, but the mere concept is massively counterproductive.
Research by the World Travel and Tourism Council found that 39% of Britons would consider staying somewhere else or not holiday in the UK if they had to pay an additional £10 tax per night per stay.
Trade body UK Hospitality commissioned independent research from Oxford Economics, and the findings reveal that the introduction of a holiday tax would be devastating for the UK economy. On the basis of a 5% levy charged on visitors being realised by 2030 - the research shows there would be a reduction of £2.2 billion in the country's GDP (Gross Domestic Product) and £688 million in reduced tax receipts for the Treasury.
The levy would see a loss of £101million in direct investment from hospitality and tourism businesses and a staggering £1.6billion tax increase for holiday makers.
Allen Simpson, chief executive of UKHospitality, is clear on the dire impact of the introduction of the levy. He said: "There are no winners from a holiday tax. From coastal communities and city centres to local guesthouses, pubs and taxi firms, the impacts are stark and indiscriminate. Taxes up, jobs lost and our high streets hit once again.
Allen added: "Holidays are for relaxing, not taxing. The Government should keep it that way and stop the holiday tax."
And of course he is right. His team have a campaigning website that enables visitors to send an email to their local MP urging them to scrap the levy and it can be found at stoptheholidaytax.uk
Our country's tourism and hospitality sectors are already under the cosh, and a looming holiday tax will simply push many more businesses over the edge.