Reform Pledges to Repeal UK "Holiday Tax" if Elected
The opposition party vows to scrap a proposed levy on overnight stays, warning it will harm families and the tourism industry.
Reform has pledged to repeal the proposed Overnight Visitor Levy, which they describe as a "cruel holiday tax," if the party wins the next general election. The levy, which would allow local leaders to impose an uncapped charge on stays in hotels, guest houses, and Airbnbs, is currently being drawn up by Labour mayors.
Robert Jenrick, Reform's Treasury spokesman, stated that the tax would be a "disaster for working people" and that families are already struggling with rising costs. He argued that the levy would negatively impact jobs in the hospitality trade and betray the working people that mayors claim to represent. Jenrick also noted that the funds generated by the tax might not be ring-fenced for tourism initiatives and could instead be used to address general cost pressures.
Reform highlighted concerns that the tax could add approximately £100 to the cost of a two-week break, potentially damaging the tourism industry and affecting households already under financial strain. The party's two regional mayors, Dame Andrea Jenkyns and Luke Campbell, have already committed to not implementing the tax, as have their Conservative counterparts in Tees Valley and Cambridgeshire.
In contrast, all ten of Labour's metro mayors are expected to introduce the levy in their respective areas, with plans anticipated by March 2028. These mayors have suggested a 5 percent cap on the charge, but the hospitality industry warns this could lead to a £1.78 billion decrease in tourist spending and the loss of 33,000 jobs.
Allen Simpson, chief executive of UKHospitality, expressed concerns that the tax would increase costs for holidaymakers, jeopardize jobs, and harm destinations across the UK. He urged the government to focus on measures that encourage tourism and investment rather than adding further costs.
This pledge from Reform comes as the Conservative Party also announced their opposition to the tax. A Conservative Party spokesman stated that their mayors oppose the levy and that Kemi Badenoch has made it clear the party is against it. The Conservatives have pledged to restore tax-free shopping for overseas visitors to support the hospitality and leisure industry.