Labour's tourist tax raid could add £300 to family holidays

British families could face additional costs of up to £300 on domestic holidays as 10 of England's 14 regional mayors prepare to introduce or consider overnight visitor taxes under new Labour legislation.

The Overnight Visitor Levy Bill, announced in this month's King's Speech, would give local leaders the power to charge tourists for overnight accommodation, with the money used to fund local public services.

Popular destinations including Whitby, Sandbanks, Bamburgh Castle and Cromer are located in areas where mayors support the proposals, according to The Telegraph.

Yorkshire, the North East, the South West and large parts of the Midlands are among the regions affected. Together, these areas account for almost 40 per cent of domestic tourism, with Britons making 37.5 million trips there each year.

Greater Manchester Mayor Andy Burnham, one of the strongest supporters of the policy, said on Friday that he had "put the case" to ministers and had "made really good progress" in pushing for the new powers.

Tourist levies are already in place in Manchester and Liverpool, while London Mayor Sadiq Khan has also backed giving local authorities the ability to introduce similar charges in the capital.

However, three regional mayors have firmly rejected the scheme. Reform's Andrea Jenkyns, Greater Lincolnshire's first elected mayor, declared: "At a time when British families are already struggling under the weight of this Labour Government's policies, the last thing they need is a tax on their hard-earned holidays."

Conservative Tees Valley Mayor Ben Houchen described the proposal as "yet another cash grab" and pledged: "If Labour hands me these powers, I won't use them."

Research published last week by Oxford Economics on behalf of Hospitality UK projected the levy would eliminate 33,000 jobs, diminish tourist spending and trigger a £2.2 billion decline in GDP.

The hospitality sector has branded the proposed tax "economically destructive," cautioning it risks pushing holidaymakers to book trips overseas instead.

Tourism currently accounts for 5 per cent of Britain's economy and supports 2.4 million workers. The sector is expanding at 9.3 per cent annually, outpacing overall economic growth, according to Visit Britain figures.

Mr Jenkyns warned that hospitality businesses and local enterprises "are already pushed to the brink by rising costs and high inflation" and that introducing the levy "would only punish the very entrepreneurs who drive our economy and threaten the jobs they provide."

The Government intends for the levy to be calculated as a percentage of accommodation costs, though a flat-rate alternative remains under consideration.

Amsterdam's model, which applies a 12.5 per cent charge on overnight stays, would add £345 to a typical £2,765 week-long family holiday, based on GoCompare data.

Lower rates of seven per cent or five per cent, as applied in Aberdeen and Edinburgh respectively, would increase costs by £193 or £138. Under a flat-rate system of £1 or £2 per night, UK Hospitality estimates families would pay an additional £112 for a fortnight's stay.

A government spokesman said: "The visitor levy will give Mayors more power to raise money and invest it in their priorities, like improving holiday destinations and growing the local economy to put more money in people’s pockets.

"The final design of the visitor levy has not been decided and it will ultimately be up to mayors to decide whether to use it.”

The Government will publish its full plans in "due course"