A Somerset MP has urged the government to carefully reconsider any plans to introduce a ‘tourism tax’ that would impose additional fees on overnight visitors. Rachel Gilmour, the Liberal Democrat MP for Tiverton and Minehead, raised concerns during a Westminster Hall debate about the potential negative effects such a levy could have on the West Country’s hospitality sector.
The Labour government is currently consulting on a proposal to allow mayoral strategic authorities in England to set local overnight visitor levies. This tax would charge tourists extra for accommodation, with funds ideally reinvested into local services to support tourism and community development. The consultation ends on February 18, after which the Ministry of Housing, Communities and Local Government will review the feedback.
While Gilmour supports devolving power to local authorities, she warned that the hospitality industry is already facing significant challenges, including rising administrative burdens. Implementing a new tax now could lead to job losses and deter visitors, ultimately harming the regional economy. She highlighted Exmoor’s reliance on tourism, noting it sustains two-thirds of local employment and generates £682 million annually across 8.4 million visitor days.
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Gilmour urged the government to carefully balance the introduction of any tourism levy with measures to ensure the UK remains competitive, such as reducing VAT rates on accommodation, a policy supported by her party. She stressed that any revenue raised must be strictly ringfenced and invested back into the local visitor economy, rather than absorbed into broader council budgets.
Somerset Council recently balanced its budget despite losing £21 million in ‘rural remoteness’ funding following a government review, a change Gilmour says has serious consequences for rural communities. She warned that areas without elected mayors could suffer disadvantages if funding gaps between urban and rural regions are not addressed.
The MP emphasized the importance of protecting the entire local economy, as tourism supports more than just hotels – it impacts pubs, shops, attractions, and transport. She praised the work of the Somerset and Exmoor local visitor economy partnership and urged that any new levy must support, not undermine, such initiatives.
Housing Minister Alison McGovern highlighted how visitor levies in other countries and devolved UK regions have been used successfully to fund tourism promotion, sustainable projects, and public services. She reaffirmed that local leaders would make decisions on implementing levies and allocating funds, ensuring accountability and responsiveness to local needs.
The government aims to empower communities through devolution, enabling them to tailor strategies to support growth and strengthen their visitor economies. Still, voices like Gilmour’s stress the importance of proceeding with caution to protect Somerset’s valuable tourism sector.