A proposed tourist tax may charge up to £12 per night for UK visitors, aiming to boost government funds amid budget concerns
London: So, it looks like if you’re planning a holiday in the UK, you might have to cough up an extra £12 a night. Reports say Chancellor Rachel Reeves is thinking about this tourist tax to help fix the government’s budget issues.
The idea is to charge visitors staying at campsites, caravan parks, or hotels, similar to what some places in Spain and France do. The fees could start at just £1 per person for a campsite and go up to £15 for a fancy hotel.
This tax would hit both foreign tourists and locals taking staycations. Wales is already considering a visitor levy, which would vary by local councils.
Some cities, like Edinburgh, are also eyeing their own tourist taxes. They plan to introduce a 5% fee on accommodations starting in 2026, aiming to rake in about £50 million a year. If the UK-wide tax rolls out, it could bring in over £1 billion annually, according to the TaxPayers’ Alliance.
Interestingly, UK travelers already pay tourist taxes in some foreign spots. A Treasury spokesperson mentioned they don’t comment on tax speculation outside of fiscal events.
This news comes right after reports that Rachel Reeves is looking to cut the Department for Work and Pensions budget, which could affect disability benefits. With rising borrowing costs, there’s worry that the Chancellor might have to raise taxes or make deeper cuts when she speaks at the end of March.
Plans might include more cuts than the 5% savings already planned for the upcoming spending review. The Chancellor has said no to further tax hikes after raising taxes by £40 billion last October.
