Labour is set to announce a Tourist Tax today. Just what the industry needs…
After it was briefed to the papers earlier in the year that the Treasury had defeated Rayner on the proposals, Guido caught wind of optimism in MHCLG that there would be movement later in the year on it and the battle was not yet lost. At conference MHCLG minister Miatta Fahnbulleh let slip that HMT was due to cave in to the demands of tax-hiking mayors. You can’t say we didn’t tell you so…
Bloomberg reports:
“The rate at which the levy will be set will be subject to consultation but is expected to be applied at around £2 ($2.62) per night, one of the people said, and pertain to both hotel and Airbnb-style stays. The difference between this tax and current levies in other English cities is that this would be a mandatory local tax, rather than a business-led charge.”
The tax will go through the English Devolution and Community Empowerment Bill. A 5% tourist tax rate will impose a 27% effective levy on all overnight stays. At least voters in the Tees Valley and Greater Lincolnshire are safe now that Ben Houchen and Andrea Jenkyns have signed the Taxpayer Protection Pledge…
Douglas Alexander – a friend of Starmer’s – was asked on Sky News if the PM will be in post at the next election. He wasn’t so sure himself:
“I think he will. There are no certainties but of course I think he will lead and I think he should because, frankly, on the biggest call in this parliament he’s exercised the right judgment, which is to keep us out of someone else’s war.”