Domestic Travel and Holidays: Visitor Levy

Debate between Baroness Kramer and Lord Lemos

Tuesday 21st July 2026 Lords Chamber

[Lord Lemos (Lab)]

That is precisely why we are leaving it to local mayors to decide. Of course we will not impose a levy from the centre. I have already said that the consultation has been completed, and we will announce the response in due course. Of course we are not going to impose the same thing everywhere.

[Baroness Kramer (LD)]

My Lords, we support devolving more economic power to local areas, but any visitor tax must come alongside vital relief for a sector that is already struggling under the Government’s NIC hikes, which happened not so very long ago. So, will the Government enact an emergency 5p cut on VAT on hospitality, accommodation and entertainment until April 2027 to provide some ongoing relief? Will they also give us a cast-iron guarantee that a tourist tax will not be an excuse to further cut already insufficient local government funding?

[Lord Lemos (Lab)]

The Government have taken a number of fair and necessary decisions on tax, welfare and spending to fix the public the finances. In honour of my noble friend Lord Livermore, I should of course mention the £22 billion black hole.