Council turns back on calls for tourism tax in popular city

YORK Council chiefs have distanced themselves from a proposed “tourism tax” which leading hoteliers have warned would have a catastrophic effect on the visitor economy of one of Britain’s most popular destinations.

The York Fairness Commission, an independent body set up by the council and sponsored by the Archbishop of York to propose ways of tackling inequality in the city, has identified the tourism tax – which could see charges of up to £1 a night introduced for each visitor to York – as a means to create a new revenue stream for the Labour-led local authority.

However following a Cabinet meeting over the proposals this week, council leader James Alexander distanced himself from them saying the council did not have the power to implement such a policy and even if it did a full impact report would be conducted before any decision was made.

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“The council does not currently have any powers whatsoever to introduce a bed tax, although giving councils this power is being considered by the Government,” he said.

“We would need to know the full impact before such a decision is made.

“We are interested in developing revenue streams to help increase funding to organisations such as Visit York that help grow the tourism sector, but not at the expense of visitors numbers.”

Coun Alexander yesterday confirmed he had written to the Chancellor asking him to consider a temporary reduction in VAT for hotel and guest house stays.

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Many of the Independent Fairness Commission’s recommendations have been incorporated in the Cabinet’s budget proposals for 2012/14, while it is considering implementing the Living Wage for employees of £7.20 instead of the minimum wage of £6.08.