Labour's 'disastrous' tourist tax risks ruining holidays for working-class families, Butlins' boss warns

Patrick O'Donnell
Sun, 05 Apr 2026 11:08:19 +0000

Butlins' boss Jon Hendry Pickup has issued a stark warning that Labour's proposed levy on overnight stays risks making holidays unaffordable for ordinary British families.

The holiday resort's chief executive described the Labour Government's planned tourist tax as potentially "disastrous" for both households and hospitality operators.

The proposed £2 per person per night surcharge would effectively double what a family of four pays for a budget break at the seaside resort chain, according to the chief executive.

He said: "A couple of weeks ago, you'd be paying £49 for a family of four, so if you put £2 per person, that suddenly becomes out of reach of a bunch of people in the UK."

The plans remain under consultation and could come into force within the next few years. Mr Pickup pointed to Chancellor Rachel Reeves' Spring Statement declaration that she entered politics to ensure "being able to pay for a holiday was never too much to ask".

In the Butlin's boss's opinion, the proposed levy would achieve precisely the opposite outcome: "I remember that statement very well, but you see what's happening. It's a holiday tax. It could be disastrous for Butlin's and businesses like us."

While the tourist tax is primarily intended to curb the proliferation of Airbnb properties, Mr Pickup contends the policy has been poorly conceived.

The three-year Butlin's veteran accused ministers of contradicting their own cost of living pledges by imposing charges on domestic travellers.

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Holiday parks like Butlin's, which operates three resorts, have been left out of emergency support measures the Chancellor introduced for pubs and music venues following sustained pressure from the industry.

This exclusion persists despite such parks providing a combination of accommodation, drinking establishments, and live entertainment.

Mr Pickup told The Telegraph that hospitality firms had been ensnared by a tax mechanism "seemingly designed to target distribution warehouses for multinational e-commerce giants like Amazon".

Business rates are expected to rise sharply this month following a sudden increase in commercial property valuations. Changes to employer National Insurance contributions have significantly curtailed opportunities for young workers at the holiday park operator.

Labour's Budget raised the rate from 13.8 per cent to 15 per cent while simultaneously lowering the threshold from £9,100 to £5,000, making it far costlier to employ entry-level staff.

Mr Pickup cited that Butlin's traditionally recruited teenagers from age 16, often providing their first work experience through roles such as lifeguarding.

On the tourist tax, a Government spokesperson previously said: "Tourists travel from near and far to visit England’s brilliant cities and regions.

"We’re giving mayors powers to make sure this benefits their communities, and help them drive economic growth to put more money in people’s pockets."