Tourism levies will 'tax rural businesses out of existence', UKHospitality warns

York and North Yorkshire Mayor David Skaith cited both York and Scarborough where this could be brought in, promising to invest any funds back into the local area.

However, speaking at the Conservative Party Conference, Kate Nicholls, UKHospitality chairman, said these taxes would put holidaymakers off certain destinations.

She said: “We cannot afford to have our rural businesses taxed out of existence.

“Across too many parts of the country, in Wales and in Scotland, and even in England, we’ve had tourism taxes.”

Ms Nicholls cited figures that show 100,000 jobs in hospitality have been lost since last year’s budget, with the increase in taxes on business.

“Tourism businesses account for 25 per cent of jobs in rural economies,” Ms Nicholls explained, “people won’t come and stay if you have a tourism tax.

“People won’t come to the holiday park, they won’t come to the caravan, they won’t come to the pub and they certainly won’t spend in the rural economy if you tax them to stay and do it.

“These are things that we should be campaigning on and pushing back against.”

Ms Nicholls urged councillors to make “sure that there are motions put forward [by councils] against tourism taxes”.

“Make sure that you set out what people are against, this is what businesses want the reassurance about,” she added.

“We don’t want a tourism tax, we don’t want to put forward additional restrictions on our rural hospitality businesses.”

Mayors have been pushing the Treasury for fiscal devolution, including tourism tax powers, however, so far, Chancellor Rachel Reeves has resisted handing over such responsibilities.

South Yorkshire’s Oliver Coppard has previously said: “Mayors like me need the powers not just to deliver, but to raise the money that funds that delivery; for us to take responsibility for our own future.

“Fiscal devolution isn’t just a nice-to-have, it’s essential.”