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Urgent question on the impact of the Government's proposed overnight visitor levy on the tourism and hospitality sectors in England.

Lead member
Rebecca Paul
Answering member
Jim McMahon
Department
Ministry of Housing, Communities and Local Government
Type
Urgent questions
Date
15 September 2026
Reference
790 cc1581-1596
House
House of Commons

(Urgent Question): To ask the Minister for Housing, Communities and Local Government if he will make a statement on the impact of the Government’s proposed overnight visitor levy on the tourism and hospitality sectors in England.

Member
Rebecca Paul (Conservative)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1581
House
House of Commons

Last Thursday, the Government published their response to the consultation on the overnight visitor levy. The “rewiring the state” Cabinet announcement committed to

“delivering good growth in every part of the United Kingdom”.

The visitor levy supports that ambition by empowering local leaders to deliver transformational investment, building the reputation of areas...

Member
Jim McMahon (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1581
House
House of Commons

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....

Member
Rebecca Paul (Conservative)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 cc1581-2
House
House of Commons

Where do I start? We are not starting from year zero. The idea that the time under the previous Conservative Government was somehow “the good days” for our pubs, our hospitality industry and our tourism economy. Just think about the thousands of pubs that closed on their watch, and the...

Member
Jim McMahon (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1582
House
House of Commons

South Shields tourism is largely made up of families from neighbouring regions who have saved hard all year round to spend a few days at the seaside, and even if the increase from this measure is marginal, they will not come. My constituents, family-run B&Bs, caravan parks, hotels and wider...

Member
Emma Lewell (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1583
House
House of Commons

I appreciate the question, and I recognise that my hon. Friend has been a champion over a long period of time for jobs in her community. I do not take her representations at all lightly, but there is not a part of the country where investment is not desperately needed...

Member
Jim McMahon (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1583
House
House of Commons

Liberal Democrats have long championed our high streets, tourism and hospitality sectors. While we strongly support devolving economic powers, businesses are already struggling under mounting costs, a VAT rate higher than that of our international peers and the Government’s national insurance contributions hike. Without support, an overnight levy risks looking...

Member
Zöe Franklin (Liberal Democrat)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1583
House
House of Commons

There is no expectation that councils will see a cut in the way that the hon. Lady explains—I am not quite sure what the rationale is for that. This is a new levy that local areas can choose to bring in, but it is down to local leaders in both...

Member
Jim McMahon (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1583
House
House of Commons

As a Cornish MP, I welcome this measure. It is important that local leaders, particularly those in non-mayoral areas, will get the opportunity to make this decision in consultation with businesses in their areas. Will the Minister confirm that emergency and temporary accommodation, as well as low-cost holiday options such...

Member
Jayne Kirkham (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1583
House
House of Commons

We will certainly set out more detail on the list of exemptions as the legislation is developed. Holiday hotspots such as Cornwall, the Lake district and many other parts of the country benefit hugely from tourism and support a huge range of jobs, but it is true to say that...

Member
Jim McMahon (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1584
House
House of Commons

I must admit that I am really puzzled by the Minister’s statement. The visitor levy is not going to be ringfenced for tourism, so how does he know that it will go to its intended destination? The levy will not be capped. We normally tax things to stop people doing...

Member
Caroline Dinenage (Conservative)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1584
House
House of Commons

As I have set out, it is for local areas to decide whether this is right for their place. Importantly, on whether this is a new tax, every tax is of course a tax, but the question is: where is the accountability and where does that money go? Our mayors...

Member
Jim McMahon (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1584
House
House of Commons

I represent a seaside constituency in Bournemouth West, and the vast majority of my hoteliers are supportive of an overnight levy, in part because Bournemouth, Christchurch and Poole council has axed its stand-alone tourism department, and because we get 10 million visitors every summer and no increase in resources to...

Member
Jessica Toale (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1584
House
House of Commons

I congratulate my hon. Friend on being the champion she is for Bournemouth. I would reflect on how the experience there, with the cuts to local government over many years, has impacted the services on the ground that would have been provided—both the neighbourhood’s quality of place and the economic...

Member
Jim McMahon (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 cc1584-5
House
House of Commons

Thank you very much, Mr Speaker. First we had a jobs tax that reduced the number of jobs in the economy, then we had a schools tax that reduced the number of children in independent schools, and then we had a farm tax that reduced the number of family farms....

Member
Andrew Snowden (Conservative)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1585
House
House of Commons

Taxes were high at almost every turn under the previous Government, but people could not see the benefits of where that tax was going. People desperately want the country to turn a corner, with the investment we collectively make through the taxes we pay—at national level, regional level or local...

Member
Jim McMahon (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1585
House
House of Commons

It is absolutely right that local communities get to decide whether to introduce this levy—that is a key part of devolution—but I am concerned about the pressures already on the hospitality and tourism sector, which is a very important part of my Brighton Kemptown constituency. We have already seen the...

Member
Chris Ward (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1585
House
House of Commons

This is definitely the benefit of a wider ministerial brief: I do not just get to go to bus councils; I also get invited to seaside towns, which is good news.

On the pressure issues, I do not think anybody underestimates just how difficult it is for those in hospitality and...

Member
Jim McMahon (Labour)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1585
House
House of Commons

Tourists visiting Torbay already pay double the rate of VAT compared with those visiting Italy, France or Spain. The reality is that a cost of living crisis is just the wrong time to implement a tourism tax. Can the Minister please share what investigations he has made of the impact...

Member
Steve Darling (Liberal Democrat)
Type
Proceeding contributions
Date
15 September 2026
Reference
790 c1585
House
House of Commons