Proposed Visitor Levy Debate
Full Debate: Read Full DebateDepartment: Ministry of Housing, Communities and Local Government
Joe Powell
Main Page: Joe Powell (Labour - Kensington and Bayswater)Department Debates - View all Joe Powell's debates with the Ministry of Housing, Communities and Local Government
(1 day, 9 hours ago)
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Damian Hinds
The hon. Gentleman is a wise man, and he anticipates a point I will come to very shortly.
Under the previous Government, candidly, there were increases to air passenger duty, rises in visa charges, the introduction of the electronic travel authorisation at a price of £10, and of course the loss of VAT-free shopping for tourists. The new Government are not just carrying on with those things, but adding cumulatively to those costs at a significantly greater rate. They are doubling the price of the ETA, which will now be £80 for a family of four. In fact, ETAs and visas are now both considerably above European price levels—considerably so, in the case of visas. On ETAs, unlike others, we do not give even a discount, let alone an exemption, for children or for people over 70. The Government have also cut the marketing budget for VisitBritain by 41%.
On top of all that, they now propose to bring in a bed tax. What is that bed tax? We do not know. It could be many things. It could be per room or per person. It could be a fixed percentage of the room rate, a fixed amount or tiered fixed amount. If it is a tiered or fixed amount, what amount? In truth, however, whatever amount is set initially is probably pretty irrelevant. Let us not forget that air passenger duty started at a rate of £5 and £10 and now ranges between £15 and well over £200. Will children be discounted or exempt?
The consultation talks about giving powers to a mayor; what about places that do not have a mayor? What will the scope be? Will it include sleeping in a tent? Will it include holiday camps, static caravans, scout camps, school trips, pilgrimages, hostels, homestays or sleeper trains? We do not know the answers to any of these questions right now.
Joe Powell
I wanted to add one important category that he did not list, which is short-term lets and Airbnbs.
Joe Powell
He will know that in my constituency there is a very high concentration of Airbnbs—I have not read his speech in advance—which have contributed to antisocial behaviour, rubbish put out on the wrong day, and even breaches of leases, which can cause fire safety and insurance issues. I welcome the introduction of this levy, partly because it will help to collect a contribution from the short-term lets in my constituency.
Damian Hinds
Mr Efford, that really was my next sentence, because there are questions about short-term lets, and about second homes in Cornwall and so on. On the short lets issue—whether rents are being pushed up is sometimes another concern with short lets—this levy is not going to solve that problem. The Government will need to do something structurally different if they want to address those short lets questions.