HOLIDAYMAKERS could be hit with new tourist tax when staying in UK campsites, hotels and B&Bs.
The government is reportedly considering the move as it could raise an estimated £1 billion, as the UK’s economic growth flatlines.
The new scheme would start from £1 per person at a campsite and would escalate to £15 per person at a five-star hotel.
Both UK residents and holidaymakers from abroad will be required to pay the new tax, which will make staycations a little bit more expensive.
The government, though, hopes the tax will raise a significant amount of money for public spending.
According to the TaxPayer’s Alliance, the move has the potential to raise an estimated £1 billion a year.
However, there is one UK city that already has a tourist tax.
Visitors to Manchester must pay the City Visitor Charge (CVC), which requires visitors to pay £1 per room, per night.
According to spokesman Kumar Mishra, the money raised by the CVC was used to clean Manchester’s streets and to market the city.
Other cities, including Edinburgh, are reportedly considering their own tourist taxes.
Speaking in China on January 11, 2025, Ms Reeves did not comment on the rumoured tax but did say that “growth is the number one mission” of the Labour government.
The chancellor added that her budget is “non-negotiable” and that it is part of her wider plan to achieve “economic stability” and “growth”.
It is hoped that the tax will support government spending, as the economy shows signs of flatlining.
When asked about the rumoured tax, the treasury said: “We do not comment on tax speculation outside of fiscal events.”
