Local Issues

Challenging the Bed Tax

I have been pressing the Government to oppose the idea of a bed tax on the hotel industry.  This proposal has been put forward by the Government's Review of Local Government Functions and Funding being conducted by Sir Michael Lyons.

I believe a Bed Tax would be extremely damaging for tourism in Bournemouth and that it would disadvantage the hotel and guest house industry against many other countries.  It could also cost thousands of hospitality jobs up and down the country.I have seen estimates that a 10% bed tax would add £100 to an average week's holiday for a family of four.  It would make Britain the highest taxed holiday destination in Europe. Hotels already pay business rates and contribute to local services and VAT is levied on hotel prices.  Tourists also already contribute to the wider local economy and tax base through their spending.

I was, therefore, delighted that the Government has now announced that it does not intend to implement this proposal.