Rebecca Paul

Let us call this what it is—Labour’s holiday tax. Although we knew it was coming, we never expected it to be uncapped. This Government have already hammered hospitality with higher employment costs and business rates. Almost 89,000 hospitality jobs have gone, and now what is Labour’s answer? Hit them again. If we tax something, we get less of it, so if we tax tourism, we will get less tourism—it is not complicated. Fewer tourists mean fewer jobs. UKHospitality estimates that up to 33,000 jobs will go, along with over £2 billion wiped from the economy. These job losses will hit young people hardest, when they are already struggling to secure those all-important first roles. We should not make the mistake of thinking that this is just a tax on foreign visitors. Tax Policy Associates estimates that trips by British tourists will generate 63% of the revenue from this levy. This is a tax on hard-working British families. A weekend away, a family holiday or a few nights by the seaside will all cost more. Every pound taken in this tax is a pound that families do not spend in the local pub, restaurant, café, shop or attraction. It is not just Brits on a staycation who will be impacted—it will be anyone staying overnight for any reason, such as visiting a sick relative, going away on business or travelling for medical treatment. Why on earth should those people be taxed simply for going about their daily lives? It is not fair. The Prime Minister has repeatedly promised to give breathing space to households struggling with the cost of living, yet this tax does the exact opposite. British hospitality does not need another tax. Hard-working families do not need another tax. Young people looking for work do not need another tax. The Government must scrap the holiday tax.