Cambridgeshire mayor opposes tourist tax amid hotel industry challenges
Paul Bristow promises not to use new tourism tax powers
Paul Bristow, the Conservative Mayor of Cambridgeshire and Peterborough Combined Authority, has chosen not to implement the new tourism tax powers set to take effect in 2028.
These powers were announced by Prime Minister Andy Burnham and will allow regional mayors across England to impose an uncapped tax on overnight stays at hotels, B&Bs, and holiday lets, aimed at financing public services and infrastructure.
However, facing the ongoing financial challenges of the hospitality sector, Bristow is concerned about adding costs at a critical time. He highlighted the UK economy's struggles, pointing specifically to national insurance rises and increased business rates affecting the hospitality industry.
Bristow has also noted that overnight visitors contribute significantly to the local economy by spending in pubs, restaurants, and attractions, making them vital for sustaining the sector.
Stephen Cassidy, a senior executive in Hilton UK & Ireland, warned that the proposed levy could add further pressure to businesses already burdened by energy costs and VAT.
The new tax measures are due just months after Peterborough's Hilton Garden Inn opens at Fletton Quays, scheduled for next summer. Recent change in ownership leads to Leisure & Co Hotel Ltd taking charge, ensuring the hotel opens its doors as Hilton Garden Inn Peterborough.
UKHospitality, the industry trade association, predicts severe economic consequences from a five percent overnight levy, possibly leading to 33,000 job losses and a £2 billion impact on the economy.
With the hospitality sector facing various pressures, Bristow's decision aims to support local businesses and promote tourism without additional financial burdens.