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UK: In a letter to the Chancellor, hospitality and leisure CEOs call on the government to scrap plans for a Visitor Levy in England.
Hotels such as Bailiffscourt Hotel & Spa, COMO Metropolitan London, Gilpin Hotel and Lake House, and Victorian House Hotel, through to companies including Hilton, IHG, Parkdean Resorts, Travelodge and Whitbread, are among the 200 signatories.
The businesses warn the UK government its proposed Visitor Levy will “hit families hardest, put jobs at risk and drain money from local businesses and communities”.
Brits could potentially face an extra £100 or more for a two-week holiday in the UK. The letter argues it could force families to shorten trips, skip travel altogether or head overseas.
In Wales, the Senedd has legislated to allow county councils to impose a holiday tax initially at a rate of £1.30 per person per night – which would add £45.50 per week to the cost of a family holiday for five people.
In Scotland, Edinburgh City Council has also announced the introduction of a five per cent tax on accommodation in the city starting this summer 2026. The Scottish Government has recently concluded a consultation on allowing Scottish local authorities to choose between charging a percentage fee or a per person per night charge.
The letter to the UK government states: “The UK’s hospitality sector is already under pressure, with rising business rates, energy costs, tax bills and employment costs. It already contributes billions of pounds in tax, through business rates, employment taxes and VAT, which at 20 per cent is double the rate of competitors in France, Italy, Spain or Portugal.
“Do not turn the Great British break into a luxury. Scrap the holiday tax and back the families, workers and the businesses who make England worth visiting.”
The full letter can be read here.
Allen Simpson, chief executive of UKHospitality, said: “Holidays are for relaxing – not taxing. Whether you enjoy a city break, a rural retreat or building sandcastles on your beach holiday, you’re already paying your fair share of tax. In fact, it’s one of the highest tax rates for visitors in Europe and the holiday tax will only increase that further.
“We are so lucky to enjoy these wonderful islands and we should be encouraging people to visit every part of our country – not taxing them for doing so. The Government needs to scrap the holiday tax,” he added.
The UK government is currently consulting on giving the powers to English local authorities to introduce the Visitor Levy in England. Organisations and individuals can contribute to the consultation here. The deadline for responses is 18 February 2026.
Highlights:
- 200 hospitality leaders, including brands such as Hilton and IHG, have urged the UK government to scrap the proposed Visitor Levy in England.
- The industry warns a tourist tax could add over £100 to a two-week UK family holiday, discouraging domestic travel.
- Wales and Scotland have already introduced or approved forms of holiday tax.
- Hospitality businesses argue the UK already has one of Europe’s highest visitor tax burdens, including 20 per cent VAT.
- The UK government consultation on granting councils Visitor Levy powers closes on 18 February 2026.
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