'Every penny raised in York should be spent here' - Call as £1-a-night tourist tax floated
Cash raised by a tourist tax in York should stay in the city and be spent there, the leader of the council’s opposition group has said.
Liberal Democrat Coun Nigel Ayre said the £5.6 million-a-year his group estimated could be raised in York yearly should fund city centre services, freeing up money for use in residential neighbourhoods.
The opposition leader added York should see a direct and visible return from the fees and income should not be sent from the city to other parts of North Yorkshire.
A spokesperson for Labour York and North Yorkshire Mayor David Skaith said York would obviously benefit from a levy raised and invested across the region.
It comes after a new report found a £1-a-night Overnight Visitor Levy on overnight stays in York and North Yorkshire could be a viable option and raise an estimated £26 million-a-year.
The York and North Yorkshire Policy Lab report commissioned by the mayor recommended a flat fee levied through a low-cost digital platform as the best option for the charges.
It also found levies in destinations such as Barcelona, Edinburgh, Manchester and Paris had not deterred visitors but recommended exempting some stays from charges.
The report stated money raised could be invested back into the local hospitality and tourism industry and support services used by visitors and residents.
Plans to give mayors the power to levy charges on tourists were announced by Keir Starmer’s Government in May, with places such as Manchester previously introducing them through legal workarounds.
But Liberal Democrat leader Coun Ayre said the £5.6 million they estimated could be raised in York was dwarfed by the £38.4 million York Council could lose due to national funding reforms.
The losses facing the council up to 2029 are part of reforms which ministers say are needed to ensure money is directed towards the most deprived parts of the country.
The £5.6 million-a-year income estimate is based on Make It York figures showing 1.7 million people stayed overnight in the city for an average of 3.3 nights each in 2024.
Coun Ayre said the funding reform losses meant ensuring that money raised by a tourist tax in York stays in the city was all the more important.
The Liberal Democrat leader said: “Every penny of tourist tax raised in York should stay in York.
“We should not be sending money raised from people staying in York elsewhere while York’s own streets are becoming dirtier, roads are deteriorating and fly-tipping continues to plague our communities.
“Instead, this money should be used to protect and improve the services that visitors and residents rely on in the city centre, allowing the council to focus more of its increasingly limited resources on residential neighbourhoods.
“That could mean more money available to fix potholes and roads, clean up our streets and tackle fly-tipping in communities across York.”
Labour Mayor Mr Skaith’s spokesperson said the benefits of the proposals should not require an explanation.
The spokesperson said: “This is a win for York and North Yorkshire, which welcomes more than seven million visitors a year.
“This is yet another poor attempt by the Liberal Democrats to wedge themselves into every issue, even by their standards.
“The mayor represents York and North Yorkshire, the levy would be collected across the region, with the proceeds invested across the region too.”