Page 8 | Labour has announced a new tax!

EvangelicalAboutButteredToast · 2026-05-13T21:34:09+00:00

I know, I know, we’re all shocked. In the King’s speech today. A new tourist tax that would be applied to overnight accommodation. It’s called the Overnight Visitor Levy Bill and could add around 5% onto hotel, B&B, guesthouse costs. They are pushing it through as we speak, I guess in time for summer.

Badbadbunny · 15/05/2026 09:56

rentals · 15/05/2026 09:51

Look at the taxes already on the UK tourism sector. The main killer is VAT at 20% of revenues. Compare that to VAT in say Italy. That apparently is only 10% on hotels etc. So half what we pay here. Adding a small additional tourism tax still puts them below the VAT paid here. Adding an additional tourism tax to UK hospitality hits the business even harder.

A hotel I have contact with for every £100 in revenue (money taken in before deducting the costs of running the business) £35 goes straight to the government. That's 35% of every penny in the door straight to the government. Think VAT, rates, other taxes. Add another 5% that's an insane tax rate. The business has then to deduct costs, salaries, purchases, utilities etc and they are down to a profit of a few pounds per £100 in the door if that.

If we want comparable taxes with overseas, which is how it's being sold, then VAT needs to be reduced accordingly.

Obviously this is seen as a tourist tax, so paid by tourists. In the end it is paid by businesses because they will lose trade, have to cut back on everything, cut prices, probably lay staff off and the very very many that are struggling will go under. To hit an industry that was destroyed by covid, where owners are still paying off large debts they took on to survive covid, during a cost of living crisis is the kind of politics I'd expect to see during a y6 class project where in depth concepts just aren't considered.

Fully agree, especially the last paragraph. We're suffering "school" level political decisions at the moment. No proper in-depth analysis as to behaviour and consequences. I've heard more sensible sixth form discussions than from Reeves and co.

sleepwouldbenice · 15/05/2026 10:46

rentals · 15/05/2026 09:51

Look at the taxes already on the UK tourism sector. The main killer is VAT at 20% of revenues. Compare that to VAT in say Italy. That apparently is only 10% on hotels etc. So half what we pay here. Adding a small additional tourism tax still puts them below the VAT paid here. Adding an additional tourism tax to UK hospitality hits the business even harder.

A hotel I have contact with for every £100 in revenue (money taken in before deducting the costs of running the business) £35 goes straight to the government. That's 35% of every penny in the door straight to the government. Think VAT, rates, other taxes. Add another 5% that's an insane tax rate. The business has then to deduct costs, salaries, purchases, utilities etc and they are down to a profit of a few pounds per £100 in the door if that.

If we want comparable taxes with overseas, which is how it's being sold, then VAT needs to be reduced accordingly.

Obviously this is seen as a tourist tax, so paid by tourists. In the end it is paid by businesses because they will lose trade, have to cut back on everything, cut prices, probably lay staff off and the very very many that are struggling will go under. To hit an industry that was destroyed by covid, where owners are still paying off large debts they took on to survive covid, during a cost of living crisis is the kind of politics I'd expect to see during a y6 class project where in depth concepts just aren't considered.

Again... not if its spent on the visitor economy to boost tourism and support these areas

NeverDropYourMooncup · 15/05/2026 10:47

EvangelicalAboutButteredToast · 13/05/2026 22:38

I’m sure it’s all very worthy and I’m sure we can all argue how local tourist areas have the right to tax holiday makers etc, however all I see is the Labour government implementing ANOTHER tax. It’s literally all they have done since they came in.

Edited

It's literally not.

Splooterer · 15/05/2026 10:49

fashionqueen0123 · 13/05/2026 22:34

Seems to be the case in many countries tbh. But not always applied to local residents

How can you not apply it to local residents?

fashionqueen0123 · 15/05/2026 11:12

Splooterer · 15/05/2026 10:49

How can you not apply it to local residents?

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It’s often charged when you check in. They ask for passports etc and you pay then.

AWeeCupOfTeaAndAnIndividualFruitTrifle · 15/05/2026 12:38

fashionqueen0123 · 15/05/2026 11:12

It’s often charged when you check in. They ask for passports etc and you pay then.

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What - as in if you show you have a British passport and stay at a hotel in the UK, you don't have to pay? I'm British and I don't even have a passport - so this could also be discriminating against poorer people, who can't afford a passport/holidays abroad etc; but even Brits who do have passports... how many people carry their passport with them when they're staying in their own country?

Or have I misunderstood?

rentals · 15/05/2026 14:05

sleepwouldbenice · 15/05/2026 10:46

Again... not if its spent on the visitor economy to boost tourism and support these areas

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This is the y6 economics problem. It's a bigger picture.

columnatedruinsdomino · 15/05/2026 14:25