Proposed Visitor Levy

Chris Webb Excerpts

Wednesday 25th March 2026 Westminster Hall

[Chris Webb (Blackpool South) (Lab)]

It is a pleasure to serve under your leadership, Mr Efford. As chair of the all-party parliamentary group for hospitality and tourism, and as an MP for Blackpool—a town built on tourism—it is important that I share my insight on the proposed visitor levies or tourist taxes, formed by the close work I have done with the industry at both local and national level.

The tourism pound has an impact far beyond accommodation providers. It supports our local pubs, restaurants, cafés, attractions, cultural venues, the high street and transport networks. However, businesses across the country tell us that rising costs and an unfair tax system are holding them back. Granted, the UK cannot compete with the weather in other European countries—although it is always sunny in Blackpool—but even when we can compete, we are barely placing in the race.

The UK currently ranks 113th in the world for tourism price competitiveness. We apply 20% VAT on accommodation, compared with just 7% in Germany and 10% in France, Italy and Spain. A couple staying one night in a three-star UK hotel already pay around £26 in direct tax, compared with an EU average of just over £16. Even a modest levy of £2 a night would widen that gap further.

While many of those countries have visitor levies, they are paired with lower VAT rates, making their overall offer more competitive. If the Government consider introducing such levies, I urge them to review the case for reducing VAT in hospitality and tourism, in line with our European partners.

Fears about the impact of visitor levies are proliferating within the tourism and hospitality sector. If this policy is to be implemented, it must be done in the right way and take businesses’ concerns into consideration. For example, a levy would introduce new administrative requirements, such as updating booking systems and collecting charges—a burden that will hit small, independent businesses, especially guest houses in Blackpool, particularly hard.

Levies would need to be implemented consistently and with clear reassurances that the revenue would cover administrative costs and stay local to benefit the areas generating it. Levies must also benefit local areas more broadly. The squeeze on local government funding, in particular, has had a significant impact on tourism, as councils such as my own are less able to invest in infrastructure to support the visitor economy.

By introducing a visitor levy, the Government have said they aim to give local leaders greater control over funding, particularly in high-traffic tourist areas such as my constituency. That is a welcome principle: the Government are right to recognise the importance of local decision making, ensuring that those with the best understanding of their region can tailor investment and develop their tourism economy as they see fit. However, a visitor levy must not be used to justify the withdrawal of existing Government support, a reassurance I ask Ministers to provide to me, the industry and local authorities. Revenue from any potential levy should be retained locally and kept outside core spending power to provide additional support for activities that directly benefit tourism, such as major events, cultural and heritage assets, and transport services.

From our brilliant airshow to the illuminations, Blackpool prides itself on large-scale, free events that bring hordes of tourists to our coast in search of a family and budget-friendly trip. Yet the value of overnight stays, along with average visitor spend, is falling against a backdrop of enhanced competition, a tourism offer in need of refreshing, and the ongoing challenge of identifying a sustainable funding model.

Local leaders are best placed to identify the infrastructure, cultural assets and improvements that spur growth, and the Government must consult meaningfully with them on their proposals. Equally, it is critical that local leaders engage with businesses and their communities throughout the process. Alongside that, we cannot ignore the wider pressures facing the sector. I and colleagues have called for reforms of business rates, a fairer approach to employer national insurance contributions, and a reduction in VAT for hospitality and tourism. Those issues remain central to the sector’s long-term viability.

In Blackpool, there is an ambition to expand the current enterprise zone along the promenade for hospitality and tourism businesses. I am grateful to Ministers for meeting me to discuss this idea, which has the potential to create jobs and unlock growth and investment along the golden mile in my constituency. Like local leaders, I recognise that a tourist tax has some potential to support the industry and our local economies, but only if it is designed with fairness, consistency and meaningful engagement. If it is not, it risks placing further strain on a sector that is already under pressure.