James Wild MP has strongly criticised Labour’s plans included in the King’s Speech to introduce a new holiday tax, warning it would place an unfair burden on hardworking families, while damaging Norfolk’s vital tourism sector.
Under plans set out by the government, a new Overnight Visitor Levy Bill - holiday tax - would be charged for overnight stays in hotels, B&Bs, campsites, and holiday parks in the UK.
If the Labour government followed the model they have already rolled out elsewhere in the country it could mean extra charges of £2 per person, per night. For a family of four staying for a week at a holiday park paying £199 that’s an extra £56 - an increase of almost 30 per cent and unaffordable for many. For a two-week break, it would represent an increase of over £100.
Responding to growing concerns about the policy, James Wild MP said the proposal risks making family holidays more expensive at a time when many households are already feeling the pressure of rising costs:
“Families across the country save throughout the year for a well-earned break. Labour’s holiday tax would make that trip to the seaside or countryside more expensive and put them further out of reach for many. It’s simply the wrong priority at the wrong time. Instead of penalising people for taking a holiday, we should be backing English tourism and helping families keep more of their hard-earned money.”
A fifth of all jobs in North West Norfolk are in the tourism, hospitality, and leisure sectors and this new tax would have a damaging impact when local businesses are already facing pressures of increases in national insurance, business rates, and regulatory costs. The latest ONS unemployment figures published today show hospitality has been particularly affected. James said:
“Our tourism sector is already struggling to cope with Labour’s higher taxes and costs and needs support to encourage more visitors - not new taxes that could deter people coming to enjoy all Norfolk has to offer.”
The proposal has raised concerns among industry leaders who warn that additional costs could discourage both domestic and international visitors, reducing competitiveness, and slowing growth.
