A Liverpool city region tourist tax that could raise £11m a year to support major events is set to be given the go-head by Chancellor Rachel Reeves in next week’s Budget. Tony McDonough reports
A so-called ‘tourist tax’ that could raise £11m a year for Liverpool city region is set to become a reality.
Media reports on Monday suggest Chancellor Rachel Reeves will announce in her Budget that she will give powers to local mayors to implement a visitor levy on people staying in hotels and Airbnb accommodation, possibly set at 5%.
In June LBN reported that Metro Mayor Steve Rotheram had joined other regional mayors in lobbying for the new tax-raising powers. He claims the money raised could be used to fund major events.
There is already a £2-a-night levy on overnight visitors to Liverpool city centre, introduced in the summer by the Accommodation BID (ABID) which is part of Liverpool BID Company. Hoteliers and accommodation providers voted in favour of the charge.
Money raised from this is used to support the city’s visitor economy including a ‘subvention fund’ that is used to offer financial support to major conferences coming to venues such as ACC Liverpool.
However, if Rachel Reeves approves the new mayoral powers that could see the end of the ABID scheme. The Combined Authority told LBN in June: “If Mayors are granted the power to impose a levy that would supersede the BID levy – it’s not about charging people twice.”
Also speaking at that time, Mr Rotheram said: “Liverpool city region is a global icon of creativity, culture, and character – attracting more than 60m visitors every year and supporting a £6.25bn visitor economy.
“That’s something to be incredibly proud of – but it also comes with pressures on our infrastructure and services.
“A small charge on overnight stays – the kind most of us wouldn’t think twice about when travelling abroad – would give us the power to reinvest directly into the things that make our area so special.”
However, to further complicate matters the ABID levy is currently being challenged by hospitality giant Whitbread, which operates four Premier Inn hotels in Liverpool city centre.
Also against the ABID levy, and any new tourist tax, is Kate Nicholls, chief executive of UK Hospitality and chair of ACC Liverpool, which operates the city’s arena and convention centre.
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Speaking today she said: “I know the Government is worried about the cost of living, but this holiday tax is little more than a higher VAT rate for holidaymakers.
“Brits take more than 89m overnight trips in England, and stay for a total of 255m nights. This is a bill we will all have to pay, and will only serve to ramp up prices and drive inflation.”