Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of a visitor levy on (a) the economy, (b) domestic tourism activity and (c) associated business tax revenues.

The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth, including through support for the local visitor economy.

The Government recognises the important role our tourism-dependent communities, including South-West Devon, play in supporting the visitor economy. At Budget, the Government published a consultation so that the public, businesses, and local government could shape the design of a visitor levy. This consultation closed on the 18th of February and a response will be published in due course. The Government has engaged with the tourism and hospitality sectors throughout the consultation process.

The precise design and scope of the power for Mayors to introduce a visitor levy is still under development, and the impacts of the levy will largely be determined by local decisions. Evidence from international and domestic schemes suggested modest rates have minimal impact on visitor numbers.

Mayors will decide whether to introduce a levy and, if so, consult on specific proposals, including how the revenue should be invested to drive economic growth in their region. We expect Mayors to engage constructively with businesses and their communities to hear any concerns. Following consultation, we expect Mayors to publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment.