The government has announced that it wants England’s elected mayors and local councils to be able to impose a new tax on short lets and holiday lets, amongst other types of accommodation.
The government says the fee would apply to visitors’ overnight trips, and it would be up to mayors and other local leaders “to introduce a modest charge if it’s right for their area.”
A statement from Housing Secretary Steve Reed says this would give local leaders “the same powers as their counterparts in cities like New York, Paris and Milan”.
Reed says: “Tourists travel from near and far to visit England’s brilliant cities and regions. We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”
The collection of the fee would be down to landlords and operators of short lets, holiday lets, hotels, bed and breakfasts, and guesthouses.
A consultation will run for 12 weeks but local Labour leaders have already come out in favour.
Mayor of London Sadiq Khan says: “Giving Mayors the powers to raise a tourist levy is great news for London. The extra funding will directly support London’s economy, and help cement our reputation as a global tourism and business destination. It also shows what can be done when ministers work closely with Mayors to devolve more powers to cities and regions.
“As part of developing our plans for the levy we will work closely with the hospitality and tourism sectors to ensure it delivers the maximum benefits for London and our brilliant businesses.”
Liverpool’s Labour Mayor, Steve Rotheram, adds: “For too long, cities like ours have been expected to compete on a global stage without the basic tools that other places take for granted. Cities like Barcelona and Paris raise tens of millions each year through similar schemes – money that goes straight back into improving the visitor experience and supporting the local people who keep those destinations thriving.
“I’m pleased that the government has listened and acted – giving areas like ours the powers we need to support and grow our economies in a sustainable way. Our visitor economy is worth more than £6 billion a year and supports over 55,000 local jobs. A modest levy is money that would stay local and be reinvested in the things that make our region stand out: our world-class culture, iconic events, vibrant public spaces and the infrastructure that ties it all together.”
And the Mayor of Greater Manchester, Andy Burnham, comments: “It’s great news that the government is committing to giving regional mayors the powers to introduce a visitor levy – a measure we have long called for. Greater Manchester already has a thriving visitor economy, and a visitor levy will help us sustain good growth over the next decade.
“I’m proud that nearly two million people from all over the world choose to visit Greater Manchester every year. The money they spend contributes about £9 billion annually to our economy, supporting over 100,000 jobs. The levy will allow us to invest in the infrastructure these visitors need, like keeping our streets clean and enhancing our public transport system through later running buses and trams, making sure every experience is a positive and memorable one.”
This article is taken from Landlord Today