Angela Rayner has endorsed a proposed local 'tourist tax' to fund infrastructure and services, similar to taxes in major European cities. Several Labour metro mayors advocate for this, suggesting local authorities be empowered to impose levies on hotel stays. However, resistance from the Treasury raises concerns regarding its impact on the UK's strained hospitality sector. The Chancellor has dismissed its inclusion in current legislative plans. The proposal faces backlash from hospitality leaders who fear it would damage England's tourism competitiveness amid existing economic pressures.
Angela Rayner has supported calls for a local 'tourist tax' on hotel stays, a proposal backed by several Labour metro mayors aimed at funding infrastructure.
Local authorities may be allowed to impose visitor levies, similar to taxes in European cities, to generate additional revenue for services.
The Chancellor has opposed the tourist tax proposal, fearing the negative impact on an already strained hospitality sector and has ruled it out in current legislation.
Hospitality leaders argue that England's already poor tourism competitiveness would worsen with additional levies, further pressuring operators in a challenging market.
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