Conservative councillors in Somerset have been accused of misleading residents over a proposed “holiday tax” on local tourism businesses—a claim that doesn’t align with the council’s actual powers.
The UK government has been consulting on a proposal to allow select local authorities to introduce additional charges on overnight stays. The intention behind these levies is to generate revenue for local community projects, aligning England with Scotland, Wales, and various European countries where such taxes already exist.
At a full council meeting in Bridgwater on May 20, the Conservative opposition sought clarity and reassurance for businesses concerned about the impact of a potential holiday tax. However, the motion was withdrawn after the ruling Liberal Democrat administration amended it, cautioning that misleading public statements could harm Somerset’s economy and reputation.
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Key points to understand:
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The government consultation on visitor levies ran from November 26, 2025, to February 18, 2026. It proposed granting “mayoral powers”—which the Somerset Council currently lacks—to impose these charges on accommodations such as hotels, B&Bs, guest houses, and holiday lets.
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The government is still reviewing responses from this consultation. No legislation or bills implementing such a levy are currently in the pipeline, as confirmed in the King’s Speech on May 13.
Council leader Bill Revans, representing North Petherton, stressed: “There are no powers that this council has to levy a holiday tax. That proposal is reserved for strategic mayoral authorities, which Somerset is not.”
Somerset Council’s constitution requires motions to relate to areas where the council has direct responsibility or can take actionable steps. While national or global issues like climate change can be discussed, motions must focus on specific council actions, such as lobbying government officials.
Though Somerset is exploring combined authority status with Dorset and Wiltshire councils, this plan has stalled in recent devolution talks, leaving any future powers on visitor levies uncertain.
Conservative Councillor Bob Filmer presented the original motion urging the council to:
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Clearly oppose any introduction of a holiday tax in Somerset
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Appeal to Somerset’s MPs to support the visitor economy
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Collaborate with local businesses and tourism groups to promote Somerset as an affordable and competitive destination
Filmer highlighted concerns from local holiday businesses about the potential tax, which could add up to five percent in costs on overnight stays. He warned this could result in millions in added charges for visitors and significant job losses in hospitality by 2030.
The Liberal Democrat amendment refocused the council’s position, emphasizing cooperation with neighboring councils, monitoring the economic impact of any future visitor levies, and cautioning against speculative statements that might damage local businesses. This amendment also acknowledged the council’s lack of legal authority to impose such a tax.
Finding the amendment effectively altered the motion’s original intent, Councillor Filmer withdrew it, resulting in no formal debate on the issue.
In summary, while the concept of a holiday or visitor tax is under government consideration for certain strategic authorities, Somerset Council does not currently possess the power to introduce such a levy. Misleading the public about this could negatively impact local tourism and the wider economy.