The director of Butlin’s Minehead resort in Somerset has criticized the UK government’s proposed Overnight Visitor Levy, warning it could significantly impact working families. Announced during the King’s Speech on May 13, the levy would grant local authorities the power to impose a tax on overnight stays in accommodations such as hotels, bed and breakfasts, guest houses, and holiday lets.
UKHospitality has described the proposal as “wildly unpopular,” estimating that the new tax could increase the cost of a two-week family holiday by up to £100. Craig Goodwin, Butlin’s Minehead director, expressed disappointment that the government is proceeding despite widespread opposition from businesses, consumers, and the hospitality sector.
Goodwin emphasized the importance of domestic tourism for Minehead’s economy, highlighting how holidays and short breaks sustain jobs and investment in the local community year-round. “The government previously stated that enabling families to afford holidays should never be too much to ask,” Goodwin noted. “Yet, this new tax threatens to hurt working families at a time when they already face financial challenges.”
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Recent polling by UKHospitality supports these concerns, revealing that 73% of respondents would reduce or cancel holidays in England if extra costs such as this levy were introduced. Additionally, 78% expressed worry about potential negative impacts on local economies reliant on tourism—a sentiment particularly relevant to communities like Minehead.
Despite resistance, some local leaders support the measure. Helen Godwin, West of England Combined Authority (WECA) mayor and Labour politician, praised the levy as an opportunity to strengthen the region’s £2.7 billion tourism economy. She emphasized that proceeds could be reinvested to benefit local businesses, improve transport, and support workers in the sector.
A government spokesman responded to the backlash by reaffirming the intent to empower mayors to reinvest in local priorities. The spokesman assured that any new charges would be modest and aligned with fees seen in other countries, leaving the final decision on rates to local authorities.
The debate over the Overnight Visitor Levy highlights the tension between raising funds for regional development and protecting the affordability of family holidays vital to the tourism-driven economies of communities like Minehead.