The Government is looking at adding a new charge to all UK holidays in a bid to raise an extra £1billion a year
UK holidaymakers could be hit with a new ‘tourist tax’ of up to £12 per person per night, with both foreign visitors and UK citizens having to pay, according to reports. MailOnline suggests that Chancellor Rachel Reeves is contemplating the move as a means to plug the Government’s Budget deficit.
The Treasury is said to be considering a scheme similar to those in place at resorts in Spain and France, which would apply to UK campsites, caravan parks, and hotels. Charges are expected to start from £1 per person per night for a campsite, escalating to £15 per person per night for a high-end and five star hotel.
This tourist tax would be applicable to both foreign visitors to the UK and Brits opting for a staycation. Wales is already exploring a visitor levy, with rates varying by local authority.
Certain cities, including Edinburgh, are also considering their own tourist taxes, with plans to implement a fee from 2026. The city council intends to add a 5% charge to accommodation costs, generating an estimated £50 million annually.
If a nationwide model is adopted, it could generate over £1 billion each year for the UK Government, as per TaxPayers’ Alliance calculations. UK travellers to some foreign destinations are already subject to a tourist tax, reports Devon Live.
A Treasury spokesperson said: “We do not comment on tax speculation outside of fiscal events.”
The revelation comes just a day after reports suggested that Rachel Reeves is considering a significant cut to the Department for Work and Pensions budget, including a substantial reduction in Personal Independence Payments and other disability benefits. This news emerges as rising Government borrowing costs have sparked worries that the Chancellor may not be able to meet her debt and spending targets, necessitating either tax hikes or deeper spending cuts when she presents a fiscal statement at the end of March.
The planned measures are said to include deeper spending cuts than the 5% efficiency savings already outlined for the spending review set to be published later this year, while cuts to the welfare bill are also reportedly being considered. The Chancellor has previously dismissed further tax increases after raising taxes by £40 billion at the Budget in October.
