Reform mayor rejects 'pick-pocket' tourism tax

Paul Johnsonand
Amber Macey,East Yorkshire and Lincolnshire
News imageBBC The entrance to a Butlin's resort, dominated by a large sand-coloured sign reading "Butlin's" in script and "Skegness Resort" in capital letters. Behind the sign is a tall green hedge and next to it a giant red bucket and yellow spade. In the background, a security hut, red and white raised barrier and resort buildings can be seen under a blue sky.BBC
The boss of Butlin's says levies could hit cheap holidays at the Skegness resort

Lincolnshire will not bring in a tourist tax, the mayor has said.

The government has consulted on allowing mayors to create visitor levies to pay for local infrastructure and improve destinations, but Dame Andrea Jenkyns said a holiday tax would "pick the pockets of families".

The boss of Butlin's, which has a resort in Skegness, has suggested that a £2 per person per night levy would hit low income families. The cost of a £49 four-night break for four could then rise to £81.

But a government spokesperson said this was "pure speculation", adding: "The final design of the visitor levy has not been decided and we have no plans to set a specific rate."

Butlin's chief executive Jon Hendry-Pickup said low-income families would be hardest hit by a tax on overnight stays.

"People will just stop going – and I don't think that's what we're looking for from the UK economy," he said.

"In the spring statement, Rachel Reeves, the chancellor, said she wanted people to be able to afford to go on holiday. This is likely to have the opposite impact."

News imageA man with a shaved head and neat stubble, who is wearing a white button-down shirt, sits in front of a wall decorated with dark, floral wallpaper and two framed paintings, one of what looks like a 19th Century building, and the other of an early 20th Century ball.
Butlin's boss Jon Hendry-Pickup says visitors already contribute to the local economy

The government has argued that visitor levies would help mayors to deliver more long-term, locally led investment in transport, regeneration and culture, which would increase local economic growth and make places more attractive.

But Hendry-Pickup argued visitors already generated benefits for the local area by spending in shops, bars and restaurants.

"What we want to do in a vibrant tourist area like Skegness is to create more tourism, because that generates more income for the local area," he added.

The consultation on visitor levies ended in February and the government has promised to publish a formal response.

Under the proposals, mayors would have powers to introduce levies and set their rates.

The government has argued similar levies in other countries typically add only a small amount per night to the cost of holidays and have minimal impact on visitor numbers.

'Financial hurdles'

Dame Andrea, whose Greater Lincolnshire region includes resorts such as Skegness, Mablethorpe and Cleethorpes, previously claimed tourism was worth £2bn to the Lincolnshire economy and supported 19,000 jobs.

The Reform UK mayor said her job was to "protect our residents and keep our county affordable".

"Our hospitality sector and local businesses are already pushed to the brink by rising costs and high inflation; they need our support, not more financial hurdles," she added.

"Introducing a visitor levy would only punish the very entrepreneurs who drive our economy and threaten the jobs they provide."

Some other mayors have supported the idea, however. In November, David Skaith, the Labour mayor of York and North Yorkshire, said a visitor levy would be "a total gamechanger" for his region.

He added: "A small charge on overnight stays could revolutionise how we deliver transport, support businesses, invest in infrastructure and the visitor economy."

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