Tourism: Overnight Visitor Levy
Debate between Jim McMahon and Zöe Franklin(1 week, 3 days ago)
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Zöe Franklin (Guildford) (LD)
Liberal Democrats have long championed our high streets, tourism and hospitality sectors. While we strongly support devolving economic powers, businesses are already struggling under mounting costs, a VAT rate higher than that of our international peers and the Government’s national insurance contributions hike. Without support, an overnight levy risks looking less like genuine devolution and more like another short-term tax grab. If Ministers hand local mayors and foundation strategic authorities the power to introduce levies, they must bring forward vital sector relief—an emergency 5p VAT cut, relief from NICs and so forth—and must not reduce local government funding as a result. Can the Minister confirm when this House will see full details of the levy? Specifically, will Ministers implement a cap and sector support to protect local tourism and hospitality?
Jim McMahon
There is no expectation that councils will see a cut in the way that the hon. Lady explains—I am not quite sure what the rationale is for that. This is a new levy that local areas can choose to bring in, but it is down to local leaders in both our mayoral strategic authorities and our foundation strategic authorities, working with their local councils, to determine if they want to do that, how they want to approach it, if they want to carry out a proper consultation and to set out where the spending and investment will follow. That is not central Government telling places what to do. It is time that we stop pretending that England is somehow one place and that one size can fit all. Devolution, if it matters, must mean that local leaders can make the right choice for their area.