Labour pushes 5% tourism levy despite backlash from Blackpool hoteliers

Angela Rayner unveiled a policy to add a 5% levy on overnight accommodation such as B&Bs, hotels and Airbnb rentals across England, with the option for local mayors or councils to adopt it. The measure is promoted as a source of extra revenue for struggling public services and infrastructure. However, owners of hotels and guesthouses in Blackpool say the tax will raise prices for the predominantly British staycation market, leading to higher basket abandonment rates and shorter stays.

Claire Smith of the Number One South Beach hotel and Paul Gregory-Ward of the Corona Hotel both warned that the added cost could push families to limit their visits to one night or skip overnight stays altogether. They argue that the levy could undermine the economic lifeline of seaside towns that rely on tourists spending on meals, entertainment, parking and shopping. The proposal has sparked a debate over whether the potential funding outweighs the risk of discouraging visitors to vulnerable coastal communities.