UK holidaymakers are on alert over the potential introduction of a new tourism tax that could see them forking out an additional £12 per person every night. Chancellor Rachel Reeves is reportedly considering the levy which would hit domestic and international tourists alike.
In Wales, they are already looking into a similar surcharge, potentially affecting English families seeking a Welsh getaway. The proposal, akin to charges in Spanish and French resorts, may extend to include UK campsites, caravan parks, and hotels, with fees ranging from £1 at campsites to £15 at premium five-star accommodations, as per MailOnline.
Further pressure on travel budgets could come from certain cities like Edinburgh, where plans are being drawn up for a 5% hike in accommodation rates starting in 2026, the Mirror has stated. The countrywide implementation of these taxes might add a hefty sum north of £1 billion annually to government coffers based on figures from the TaxPayers’ Alliance.
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Whilst Brits travelling overseas in some regions are already accustomed to paying tourist taxes, this would mark a significant policy shift at home. A Treasury spokesperson has maintained silence on the matter, simply commenting: “We do not comment on tax speculation outside of fiscal events.”
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Following suggestions that Rachel Reeves is contemplating a major cut to the Department for Work and Pensions budget, including a significant reduction in Personal Independence Payments (PIP) and other disability benefits, reports have emerged. This comes amidst worries about the economy and escalating borrowing costs.