Proposed Visitor Levy

Julian Smith Excerpts

Wednesday 25th March 2026 Westminster Hall

[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.

[Sir Julian Smith (Skipton and Ripon) (Con)]

UKHospitality talks about this tax being

“the wrong policy at the worst time”.

One of my worries is that entrepreneurs in the tourist industry in North Yorkshire and elsewhere are on their knees due to post-covid issues, national insurance, rates and a whole range of factors. Would my right hon. Friend agree that, whatever the merits of this policy, the levy must be paused until those businesses are back on their feet and start investing again?

[Damian Hinds]

I do agree. My right hon. Friend and I have been in multiple debates in the main Chamber talking about exactly those issues, both for tourism and for the wider hospitality sector.

There are some arguments in favour of an overnight visitor levy, some of which have come up already. The main one is summed up in the sentence,

“Visitor levies provide local government with a financial incentive to grow the visitor economy.”

That has truth to it, and there is definitely an argument for making hospitality more hospitable through more investment in the visitor economy—in facilities, events, policing and so on. The sector needs more money going into sales and marketing if we are to realise our potential, so there might be an argument for this measure if the money were truly ringfenced—if it were only being spent on truly incremental items. Even then, we would still get the problem where hotels over quite a wide area pay it but the events, attractions, extra policing and so on all take place somewhere else. That might apply in Hartlepool, for example, as has been mentioned. It will certainly be the case in London—a hotel in Brent Cross is not going to feel the benefit of some extra things being put on in theatreland in the west end.

Of course, though, the money will not be ringfenced. Even if it is nominally ringfenced in year one, do we honestly believe that in year five it will still be ringfenced? Of course it will not.

--- Later in debate ---

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to see you in the Chair, Mr Efford. I thank the right hon. Member for East Hampshire (Damian Hinds) for bringing forward this debate.

I have long campaigned for a visitor levy. York itself sees 1.7 million overnight stays—6.2 million visitors to our city—and as a result we recognise the cost of tourism to our local authority. Whether it is about tidying our streets, putting infrastructure in place, cleaning our city or making additional provisions, the pressure of tourism on our public services is being paid for by local residents. There is an equation where local residents feel that they pay into the system and tourism gains, but that tourists are not making their contribution. I listened carefully to the right hon. Member; he talked about the money, the taxation and the benefit that goes into the national funding pot from the taxation system but is not being invested in local communities.

[Sir Julian Smith]

I am a big supporter of the hon. Lady, and I do not want to attack her personally, but we have a big issue in York and North Yorkshire. The Mayor is proposing this tax, which will clobber my constituents’ businesses in North Yorkshire. It may be a benefit for York, but it will cause a massive problem for rural North Yorkshire.

[Clive Efford (in the Chair)]

Order. Before you respond to that intervention, there are 10 Members on their feet and we have only just over half an hour for Back-Bench speeches, so that is roughly three and a half minutes each. Please bear in mind when you are speaking that the people behind you will have a three and a half minute limit—or less, if you speak for too long.