Tourism tax: poll backs mayors' calls for visitor levy powers from Treasury

It comes as South Yorkshire Mayor Oliver Coppard called for the Government to back mayors with greater fiscal devolution, including around visitor levies.

“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,” Mr Coppard said.

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

Visitor levies are a small charge applied to accommodation to invest back into the local area. In cities like Barcelona this brings in revenues worth almost £90m annually.

Currently, only Scottish councils can officially introduce a tourist tax, after Holyrood passed legislation on this last year, however there are workarounds which have allowed Manchester to add a £1 fee on hotel rooms.

Edinburgh became the first city to approve a visitor levy in January, charging a 5 per cent fee, capped at seven nights, on their hotel and AirBnB bills.

Yorkshire’s metro mayors have consistently been calling on the Government to be given these powers.

In January, West Yorkshire’s Tracy Brabin revealed that this had been discussed with the Chancellor.

However, there was no announcement around this in the Spring Statement or last month’s Spending Review.

The Yorkshire Post understands that while Angela Rayner, the Local Government Secretary, is keen on fiscal devolution, the Treasury is reluctant to hand away too many tax-raising powers.

The More in Common and IPPR North polling found a plurality of respondents supported mayors being given powers for visitor levies, while that support jumps to 42 per cent when people are told it will go towards improving local public transport.

Mr Coppard added: “If we’re serious about embedding devolution and lifting up communities who’ve been left behind, the next step has to be bolder.”

In York, the mayor, councillors and businesses have been calling for some sort of visitor levy in the city for years.

Local business owner Keith Rozelle found that the city’s annual ratio of tourists to residents of 43 to one was higher than Amsterdam and Barcelona.

Mayor David Skaith said: “I want these powers, mayors want these powers, and this polling shows that the public want us to have these powers too.

“In an area like York and North Yorkshire, this could mean millions of pounds coming into our area to fund essential services and enhance the tourism offering - without costing residents a single penny.

“It's time for the Government to move on this and give us the tools we need to deliver for our residents.”

IPPR North’s head of advocacy Rosie Lockwood added: “People know that, on the whole, the best decisions are those taken locally.

“So they are ready for local visitor levies to generate investment in the places they call home, for the benefit of locals and visitors alike.”