Tourism: Overnight Visitor Levy

Lindsay Hoyle Excerpts

Tuesday 15th September 2026 Commons Chamber

[Jim McMahon]

I appreciate the question, and I recognise that my hon. Friend has been a champion over a long period of time for jobs in her community. I do not take her representations at all lightly, but there is not a part of the country where investment is not desperately needed to improve the visitor experience and the experience of people who live there. If we get this right—it will be down to our local mayors and local leaders to implement the investment—the truth is that everyone will benefit from the improved visitor experience.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[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?

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[Jim McMahon]

I congratulate my hon. Friend on being the champion she is for Bournemouth. I would reflect on how the experience there, with the cuts to local government over many years, has impacted the services on the ground that would have been provided—both the neighbourhood’s quality of place and the economic focus on tourism. We need to start rebuilding them, and this may be one way of doing so.

On the lessons learned, places may approach this with a flat rate, so no matter where people go, everyone will pay £5, or whatever. However, we believe that at its core this has to be fair and proportionate, so we ask ourselves, “Why should somebody visiting a guest house in Blackpool pay a flat fee in the way somebody visiting the Ritz here in London would?” That is not fair or proportionate, but a percentage rate is.

[Mr Speaker]

Let us try Andrew Snowden, who represents a nearby constituency.

[Mr Andrew Snowden (Fylde) (Con)]

Thank you very much, Mr Speaker. First we had a jobs tax that reduced the number of jobs in the economy, then we had a schools tax that reduced the number of children in independent schools, and then we had a farm tax that reduced the number of family farms. Given that correlation, have the Minister and the Government learned anything from this socialist tax-addicted way in which they are governing the country, and will the tourism tax do anything other than reduce tourism?

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[Fleur Anderson (Putney) (Lab)]

I welcome the visitor levy and the investment it will bring to London’s visitor economy. Has the Minister been listening to London Councils, which wants 50% of the money raised in each borough to return to that borough, so that businesses know it is going back to the things that they want, such as cleaning Putney High Street?

[Mr Speaker]

Order. Can I just help Members who have been here a long time? Looking at the Minister is not how we do it; questions to the Minister must go through the Chair, because that is how we try to keep a balance. Some Members have only been here a few years, I know, but please try to make this work.

[Jim McMahon]

We have designed the policy to allow as much local flexibility as possible. That recognises that the approach in different places will require flexibility to take into account local circumstances. In practice, that means it will be for local areas, including London, to decide how they invest the money that comes through the system. However, our expectation is that there will be partnership and collaboration between local government and our regional mayors, where they exist, and with councils that are members of foundation authorities in other places.