A coalition of business, hospitality, tourism, countryside and travel groups have urged the government to axe holiday taxes, after Edinburgh introduced a 5% levy on top of booking costs last week.
Edinburgh: introduced a holiday tax last week
The City of Edinburgh Council estimates that the charge on hotel, bed and breakfasts and self-catering accommodation bookings will raise around £45m to £50m in the 2028/29 financial year.
Business groups have written to new chancellor John Healey to warn of the impacts a holiday tax will have.
Signatories including UKHospitality, the National Farmers’ Union, Airlines UK, UKInbound, UKEVENTS and the British Independent Retailers Association said the government’s proposed holiday tax would be ‘economically and socially damaging’.
Their open letter added: “As a coalition, our customers and our businesses will all be directly or indirectly affected by this tax. It’s going to hit the great British holiday hard, with holidaymakers suddenly facing an extra £100 on their two-week family holiday.
“This is money that will be taken out of the wider economy – a foregone meal at the pub, a visit to a local attraction or fares with the local taxi company.
“There are no winners from a holiday tax. Holidaymakers, hotels, B&Bs, guesthouses, holiday parks, pubs, restaurants, shops, tourism, visitor attractions, farm shops, events, music, sports and business travel will all be hit.
“The public want their holidays kept relaxing, not taxing. It’s why a holiday tax is so unpopular, with twice as many people opposed, as those who support it.”
New prime minister Andy Burnham previously championed a visitor tax when mayor of Manchester. The City Visitor Charge, introduced in April 2023, charges a £1 per room, per night fee, and raised £2.8m in its first year.
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