A new ‘tourism tax’ risks doing harm to rural businesses trying to attract more visitors, a North East council leader has claimed, writes Local Democracy Reporter, Daniel Holland.
The Government announced ahead of Rachel Reeves’ Budget that local mayors, including Kim McGuinness, will get the power to impose a new visitor levy on overnight stays in their regions.
Ms McGuinness has long championed the idea of a £1-per-night charge on North East hotel stays in order to raise revenue that could be reinvested in cultural attractions and events.
But Northumberland County Council leader Glen Sanderson has cautioned against imposing such a levy, versions of which are already in force in areas including Manchester and Liverpool.
The Conservative councillor warned: “I am very worried about these plans. A ‘Tourism Tax’ puts additional pressure on tourism and hospitality businesses, particularly rural ones, already struggling to manage rising employment and supply-chain costs.
“I see it as yet another burden on a sector we are trying to grow. I believe passionately that, rather than impose extra burdens on tourism and hospitality businesses, Government should invest in infrastructure to grow the sector – for us that would mean dualling the main A1 route connecting Northumberland north to Scotland – which is now at a standstill on an almost daily basis.
“I will be urging our combined authority mayor to reconsider the levy, but if it is to go ahead, they must commit to investing any monies levied directly back into the places where they are raised.”
Imposing a visitor levy was a manifesto pledge for Ms McGuinness, who was elected in May 2024, and she said this week that even a small charge would “transform the welcome we can give to people coming to North East England from all over the globe”.
The Labour mayor added: “This signals the start of a new era of events and festivals we will stage to bring a new focus to our unique world heritage sites at Hadrian’s Wall and Durham Cathedral, our stunning coastlines and the iconic Tyne bridges and gorge.”
Regional tourism bosses are aiming to double the number of people visiting the North East over the next decade.
The Government said that any new visitor levy would apply to visitors at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses.
A consultation on the proposals will run for 12 weeks, though details of exactly what charges will be applied in each region have not been confirmed.
Lord Houchen, the Conservative Tees Valley mayor, has vowed to impose no tourist tax in Teesside, Darlington and Hartlepool.
Daniel Holland
Reporter for the Local Democracy Reporter Service.
South West Durham News covering news across County Durham.
