UK government's tourist tax plans could boost funds for culture sector, industry leaders say

"The UK government's plans to give English mayors new powers to levy tourist taxes have been cautiously welcomed by culture sector professionals, who say that revenue raised from the new tax should go towards supporting arts and culture. Under the plans, which were announced yesterday, any new levy would apply to visitors at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses, says a statement from the Ministry of Housing, Communities and Local Government."

""This valuable new income source should not be squandered on pet political projects but ensuring that UK creative bodies have the infrastructure and resources to succeed," says Tristram Hunt, the director of the Victoria and Albert Museum. Hunt adds that this is "hugely welcome news" from Chancellor Rachel Reeves, who delivers her budget for the UK later today, which will bing British cities into line with their international competitors."

"The new levy, according to the independent think tank Cultural Policy Unit (CPU), could generate more than £1.2bn a year to support cultural and regional growth across the country. In a statement ,the CPU caveats that "the funds raised must be additional to existing local government funding, to make a real impact on people's lives across the country"."

English mayors will be granted powers to levy a tourist tax on overnight accommodation including hotels, holiday lets, bed and breakfasts, and guesthouses. The proposed rate is expected to be around £2 per night and will be subject to consultation. Mayors can invest the proceeds in transport, infrastructure, and the visitor economy. Culture sector professionals welcome the revenue but insist funds should support arts and cultural institutions rather than unrelated political projects. The Cultural Policy Unit estimates the levy could raise more than £1.2bn annually and cautions that funds must be additional to existing local government funding.

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