𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Labour’s planned tourist taxes on overnight stays will crush family-run businesses in traditional seaside towns, Andrew Griffith has warned. The Shadow Chancellor said they will suffer because people may think twice about having a staycation because they will have to pay more.

Writing exclusively for the Express, Mr Griffith said the draconian measure will clobber resorts up and down the country – from Whitby to Weymouth. He said that businesses have been “begging” the Government to “stop attacking them” ever since Rachel Reeves’ first budget two years ago.

Warning of a Labour Party “hell-bent in its ideological tax crusade” he said: “We all know why. Labour needs the money, because the welfare bill is out of control and they are too afraid of their backbenchers to reform it.

“Instead they never stop looking for new people to tax, even if that means going after a family-run guest house at the seaside.”

He said a Conservative government would cut the welfare bill, cut taxes, and abolish business rates for thousands of pubs, hotels, and high street shops.

Labour mayors plan to impose a tax of up to 5% on overnight stays across the country after plans for a new tourism levy were waved through by Mr Burnham last week.

The Government has said the charge will be set as a percentage of accommodation prices, rather than a flat fee.

It means families will be forced to pay more in tax if they go away during the school holidays, when high demand pushes up prices in tourist hotspots.

It is also feared the levy will effectively act as a popularity tax on Britain’s best-loved destinations, which are likely to be more expensive to visit because they attract so many tourists.

The Government was warned during the consultation process that tying the tourism levy to accommodation prices could “increase costs during peak school holiday periods”.

However, ministers decided to push ahead with the percentage-based tax regardless, arguing it was the “most proportionate and equitable method of calculating the charge”.

All Labour authorities, including Lord Khan of Tooting, the Mayor of London, Burnham ally Steve Rotheram in Liverpool, and Kim McGuinness in the North East, are expected to introduce the new tax on overnight stays in hotels, holiday lets and bed and breakfasts.

Reform UK and Tory mayors have pledged not to impose the levy, warning that Mr Burnham will be unable to “tax his way to growth”.

Ministers plan to introduce legislation establishing the levy “in due course”, with mayors expected to set out their plans by March 2028.

Hoteliers and hospitality leaders, such as Sir Rocco Forte and Sir Tim Martin, are also dismayed at the plans, claiming they would lead to higher prices, fewer jobs and less investment.

UKHospitality estimated the tax would cost the industry at least £1.6billion.

The raid represents the latest blow to a sector already reeling from increases in the minimum wage, employment taxes and business rates under Labour.

The landlord of Britain’s best pub said the tourist tax “will put people off” staying in hospitality venues.

George Greenaway and his wife Louise run the Tamworth Tap, in Tamworth, Staffs, which was crowned the Campaign for Real Ale Pub of the Year for a record third time this year.

He said: “I think this tourist tax is giving with one hand and taking with the other for the hospitality industry, life seems to be one big tax opportunity for this government.

“The timing is not the best, they should really be reassuring the hospitality industry as a whole.

“It will put people off, say if a seaside town like Brighton had the tax, you might move along the coast to somewhere like Rye to avoid it.”

Mr Burnham has also faced a backlash from the Labour back benches. Emma Lewell, the MP for South Shields, where higher taxes are planned, said: “I am really sad about this – it’s anti-growth and comes at the worst time for hospitality.”

A spokesman for the Ministry of Housing, Communities and Local Government said: “If local leaders who know their areas best opt to use their power to introduce a visitor levy, this will be set as a percentage of the cost of accommodation rather than a flat fee.

“This proportionate approach means that low-cost holidays will stay low, while those who can afford it contribute most to the places they visit.”

The backlash comes as Mr Burnham is expected to call for a “culture shift” when he gathers business leaders in Downing Street on Monday to pledge to back entrepreneurs.

Ahead of the event, he said: “That means putting Government firmly on the side of the people who take risks, start companies, create jobs and bring new ideas to life.”

“It means ensuring ambition is rewarded, making it easier to start and grow a business, and giving people the confidence that if they have a great idea, they’ll get all the support they need to bring it to life.”

Mr Burnham and Chancellor John Healey are weighing options for their first Budget on October 28.