Somerset Council has definitively ruled out implementing any form of “holiday tax” for the foreseeable future, responding to concerns from local Conservative councillors about the impact such a levy could have on the region’s tourism sector and economy.
Earlier this year, the Labour government conducted a consultation on granting mayoral strategic authorities in England the power to impose “local overnight visitor levies.” These levies would allow local councils to add a surcharge to tourists’ overnight stays, with the collected funds intended for reinvestment into local infrastructure and services.
The consultation ended on February 18, and the Ministry of Housing, Communities and Local Government (MHCLG) is currently reviewing feedback before any formal proposals are presented to Parliament.
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In response to worries raised by Rachel Gilmour, Liberal Democrat MP for Tiverton and Minehead, and Conservative councillor Bob Filmer, Somerset Council was asked to clarify its position on the potential tax. Councillor Filmer emphasized that such a tax could severely harm local businesses, particularly those in the hospitality and tourism industries.
Councillor Filmer addressed the council’s executive committee in Taunton on April 1, pointing out that the proposed levy could add up to a 5% charge on overnight stays in hotels and holiday lets, potentially resulting in millions of pounds in extra costs for tourists and thousands of hospitality job losses by 2030.
Highlighting Somerset’s reliance on tourism, especially in his Brent division encompassing areas like Berrow and Brean, Filmer underscored the struggles many family-run businesses already face due to rising taxes, staff costs, and overheads such as fuel. He urged the council to provide clear reassurances that no such tax would be introduced in Somerset.
Responding to Filmer’s concerns, Councillor Federica Smith-Roberts, portfolio holder for communities, culture, and equalities, confirmed that Somerset Council currently has no authority or intention to impose any tourist tax. She explained that Somerset is not part of the government’s map of mayoral strategic authorities eligible to enact such levies and that any decision would depend on future government policies and regional devolution.
Smith-Roberts highlighted tourism as a cornerstone of Somerset’s economy, as outlined in the county’s economic prosperity strategy, reaffirming the council’s commitment to supporting the visitor sector.
Following the meeting, Councillor Filmer pledged to continue advocating against any introduction of a local holiday tax, emphasizing the importance of protecting Somerset’s tourism industry and preserving its thousands of jobs.
“Tourism is one of Somerset’s key industries and supports thousands of local jobs,” Filmer stated. “Businesses are already under significant pressure, and adding new local taxes on visitors would only make our region less competitive. We must back the tourism sector, not burden it.”