Tourism: Overnight Visitor Levy

Debate between Jim McMahon and Caroline Dinenage

Tuesday 15th September 2026 Commons Chamber

[Jim McMahon]

We will certainly set out more detail on the list of exemptions as the legislation is developed. Holiday hotspots such as Cornwall, the Lake district and many other parts of the country benefit hugely from tourism and support a huge range of jobs, but it is true to say that the impact of tourism comes with a cost, and it is right that that cost is met by a fair and proportionate levy on the people who benefit. With that, local areas will see the benefit and the investment that will follow.

[Dame Caroline Dinenage (Gosport) (Con)]

I must admit that I am really puzzled by the Minister’s statement. The visitor levy is not going to be ringfenced for tourism, so how does he know that it will go to its intended destination? The levy will not be capped. We normally tax things to stop people doing them, not to encourage them to do more of them. What evidence can he offer to demonstrate that this measure will bring growth, as he says? What work have the Government actually done to prepare for this measure? How will they know whether hospitality businesses—let us face it, they are already collapsing in their droves following decisions that the Government have already taken—will survive yet another tax being imposed on them?

[Jim McMahon]

As I have set out, it is for local areas to decide whether this is right for their place. Importantly, on whether this is a new tax, every tax is of course a tax, but the question is: where is the accountability and where does that money go? Our mayors and foundation authorities will be required to set out in consultation how much they want to raise and for that to be proportionate to their local area, and to do an impact assessment of the proposed levy and, importantly, set out where the money will be invested.

In relation to places without a levy, just think about who pays for the impact of tourism, who puts on the events and performances that bring people into the local area, and what is the wider experience? I went away to North Yorkshire in the summer, and my experience was not just the accommodation we stayed in, but visiting the local village and the local town, and driving around the local area. We need to think about the visitor experience, which is wider than just the accommodation where people stay, because it is the place where they go.