Tourism tax in parts of Yorkshire takes 'significant step' closer with legislation
York and North Yorkshire Mayor David Skaith and West Yorkshire’s Tracy Brabin have both stated they will introduce some sort of levy in their regions.
The prospect of European-style tourism taxes in parts of Yorkshire took a step closer, as the Government introduced legislation to hand over these powers to mayors.
The Visitor Levy Bill, laid in Parliament, would enable the collection of nightly fees from overnight stays to be reinvested locally in high streets, public spaces and tourist attractions.
Such taxes have been common in cities across the continent for years, with Barcelona raising almost £125m every year.
Currently only councils in Scotland, however when the legislation is passed this power will be handed over to English mayors which the Government says is “the most significant step in making fiscal devolution a reality”.
York and North Yorkshire Mayor David Skaith and West Yorkshire’s Tracy Brabin have both stated they will introduce some sort of levy in their regions, despite the protests of some tourism and hospitality businesses.
Research from York St John University estimates that a £2 levy per night could raise £52m for Mr Skaith.
He said: “We’re home to historic towns and cities, two of the UK’s best National Parks and a coastline brimming with character.
“There’s something for everyone, and we welcome more than 40 million visitors every year. That’s why an Overnight Visitor Levy will be a total gamechanger for our county.
“Investing in York and North Yorkshire’s cities, towns and villages to make them a better place to visit, and to live in, is at the heart of why I will be introducing a levy in our county."
South Yorkshire Mayor Oliver Coppard is yet to decide whether he will bring in a tourism tax, while Hull and East Yorkshire Mayor Luke Campbell and Tees Valley Mayor Lord Ben Houchen have both ruled it out.
The Labour mayors have agreed to cap the levy at five per cent each night.
Businesses must be consulted before a levy is introduced, while student accommodation, care homes and other similar settings will be exempt.
Communities Secretary Angela Rayner said: “Millions of people visit our wonderful towns and cities each year, and it’s right that our communities should be able to feel the benefit of that footfall.
“Every pound raised through these levies will stay in the local area. Whether that’s better transport, thriving high streets, or more attractions that keep visitors coming back.
“This is about giving mayors and local leaders the choice to invest back into what matters most to local people, while protecting lower-cost stays and making sure businesses have their say.”
The levy will only apply to the first 28 consecutive days of a stay, as longer periods would count as long-term accommodation.
People who only rent out a spare room occasionally will only pay the levy if they earn above a set amount, with local leaders able to adjust this threshold to reflect the local tourism market.
Zoë Billingham, director of IPPR North, said: “Today marks one of the biggest steps for fiscal decentralisation this country has seen so far.
“IPPR North has long called for mayors to be handed the powers to raise an overnight visitor levy so they can invest in the people and places they know best.
"Millions of visitors stay every year for our football, our music, our culture. It’s only right that tourism gives something back to local communities.
“At the same time, we welcome measures to protect budget holidays by making the levy progressive. This is a chance to prove what devolution done well can deliver.”