A North Yorkshire MP is warning a proposed tourism tax would be a “hammer blow” for hospitality businesses everywhere.
Sir Julian Smith, Conservative MP for Skipton and Ripon, told councillors he would fight to prevent an overnight visitor levy being introduced.
Chancellor Rachel Reeves announced plans to give locally-elected mayors the power to introduce the tax and reinvest the money directly into their areas.
David Skaith, Mayor of York and North Yorkshire, has described it as a “total gamechanger” for the region. He believes it is a helpful option.
But speaking at a meeting this week, Sir Julian said hospitality businesses were already struggling to make a profit due to pressures from energy costs, taxation and business rates.
“We cannot add to the burden on these women and men that are creating wealth. That is what we rely on for jobs.”
Conservative councillor for Mid Craven, Simon Myers, supported the MP’s stance.
He added: “It may interest those who think that a tourist tax is a jolly good idea to know that the proposed business rate changes will mean, on average, every pub in North Yorkshire paying £12,000 a year more in business rates.
“For the average hotel in North Yorkshire it’s £200,000 a year in additional business rates.
“If you pop that in the mix with increases in National Insurance contributions and the minimum wage, and a faltering economy and a loosening off of demand, and then think it’s a jolly good idea to tax those people more, I’m afraid you’re barking up the wrong tree and you have no understanding of who supplies the jobs for our young people and people across North Yorkshire.”
But Green Party councillor David Noland, who represents the Skipton North and Embsay-with-Eastby division, said he supported the idea of a tourist tax,
He added: “I think if you if you travel to Europe it’s very common to spend that. I can remember paying something like €6 a night in Florence, a huge destination, and then €1 other places per night per person.
“To me it’s acceptable as long as it’s ring fenced.”
Speaking ahead of the Budget on the proposed levy, the Mayor of York and North Yorkshire, said: “We’re home to beautiful towns, villages and cities and receive 41 million visitors a year as a result.
“A small charge on overnight stays could revolutionise how we deliver transport, support businesses, invest in infrastructure and the visitor economy.”
York and North Yorkshire Combined Authority and York St John University has calculated that a £2 per-room, per night levy could generate around £52m a year.
