Families planning UK holidays this year have been warned they could be stung by a new tourism tax. A £12 per person per night charge is reportedly being considered by Chancellor Rachel Reeves and would have to be paid by both foreign visitors and Brits.
Wales is already exploring a visitor levy, which would impact families from England heading to Wales for breaks. A tax could now be brought in across the UK, MailOnline reports.
Ministers are said to be considering a scheme similar to those in place at resorts in Spain and France, which would apply to UK campsites, caravan parks, and hotels. Charges could start from £1 per person per night for a campsite, rising to £15 per person per night for a high-end and five star hotel, significantly adding to the cost of trips.
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Certain cities, including Edinburgh, are also mulling their own tourist taxes from 2026, the Mirror reports. The city council wants to add a 5% charge to accommodation costs. If the charges are brought in across the country, it could bring in over £1 billion each year for the UK Government, according to TaxPayers’ Alliance calculations.
Brits who travel abroad to some countries and cities already have to pay a tourism tax. A Treasury spokesperson said: “We do not comment on tax speculation outside of fiscal events.”
The reports come after it was suggested Rachel Reeves is considering a significant cut to the Department for Work and Pensions budget, including a substantial reduction in Personal Independence Payments (PIP) and other disability benefits. It comes amid concerns over the economy and spiralling borrowing costs.