Dear Constituent,
Thank you for contacting me about the new visitor levy on overnight trips.
I share your concerns. The Chancellor's decision to impose a visitor levy is yet another tax pushed by this Labour Government. It will drive up costs for hard-pressed families and be yet another barrier for British hospitality. I do not support measures that risk making the UK less attractive to tourism. Hotels and B&Bs are already subject to 20 per cent VAT, corporation tax, business rates and National Insurance contributions. A visitor levy amounts to yet another tax on British holidays imposed by this Government. It will inevitably drive up costs for already hard-pressed families and deliver a further blow to our hospitality sector.
Moreover, the Chancellor’s wider economic approach has placed significant financial strain on businesses, particularly, as you note, those in tourism and hospitality. The 2024 Autumn Budget left the sector facing a £3.4 billion additional tax burden, and at the 2025 Autumn Budget, the Treasury cut the discount on rates for small businesses, hitting them with a new stealth tax.
It is vital that the Government change course and support businesses that create jobs and growth. Whilst the last Government took a third of properties out of business rates completely through Small Business Rates Relief, this Government is determined to undermine our high streets and stall local growth.
As part of the Shadow Treasury team, we have set out the fully-costed proposals to abolish business rates for leisure, retail and hospitality firms with a rateable value of £110,000 or less a year, fully-funded by controlling welfare spending. As stated by the Shadow Chancellor, Mel Stride, the Conservatives would cut business rates for high streets and give certainty to local hospitality businesses.
Thank you again for taking the time to contact me.
Yours sincerely,
