York MP says hostels and camping should be exempt from tourism tax
Rachael Maskell has welcomed plans but say money raised locally must stay in York
A York MP says any new tourist tax must exempt children, camping and hostel accommodation. Rachael Maskell has welcomed plans to allow mayors to introduce the charge on overnight stays, but she says money raised in York must stay in the city.
"We're a step closer to a tourist tax. I've long campaigned for the power to raise local income through a visitor levy. Widely used across Europe and also in Edinburgh and Manchester, small levies on overnight stays on hotels and airbnb-type accommodation would raise significant income for York.
"I'm clear that children should be exempt from the tax, as should camping and hostel accommodation, however for sustainable tourism, local residents need to see the benefits from guests staying in their city. In the consultation I have made the case that revenue raised should come direct to York, with a proportion spent to improve our city's infrastructure, to benefit residents and tourists and half should go to local community projects in our city. Money raised in York must stay in York."
Hotel and tourism firms have warned the uncapped proposals will be “hugely damaging” and hit British holidaymakers hard, but ministers say the policy will help local leaders boost investment in their areas.
Mayors will decide how to spend the revenue raised from the fee, which will apply to both overseas tourists and Britons on so-called “staycations”, rather than money being funnelled back into the Treasury.
Ministers plan to introduce legislation establishing the levy “in due course”, with mayors expected to set out their plans by March 2028.
Plans for the tax were first announced under Sir Keir Starmer following similar schemes introduced by the devolved administrations in Scotland and Wales.
Prime Minister Andy Burnham reiterated his commitment to the scheme, framing it as part of his wider devolution agenda aimed at pushing power out of Whitehall.
Downing Street defended the plans amid questions over its impact on cash-strapped households struggling to afford a holiday and businesses.
No 10 insisted the “overwhelming majority” of hospitality firms would not be “directly affected” by the policy because the charge only applies to overnight stays and would be at the discretion of mayors and strategic authorities.
Officials pointed to similar schemes that already exist in Europe, the US and Canada to help fund local services and attractions, and said they expected the fees to be used in a “proportionate” way.