Proposed Visitor Levy

Clive Efford Excerpts

Wednesday 25th March 2026 Westminster Hall

[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.

[Rachael Maskell]

I was coming to the point the right hon. Member for Skipton and Ripon (Sir Julian Smith) raises, because I believe that the levy should be collected by local authorities. If the mayor collects it, it should be hypothecated to local areas so that they can determine the spend of that resource. Certainly I would propose that half the money be spent directly on tourism, through work with the industry, but there is also the opportunity to invest back into our communities and in local projects.

I would put in place exemptions for children; I think that would be appropriate. I would exempt certain forms of accommodation, camping and hostel accommodation, because we know that those are used for budget holidays. Of course we need to respect the cultural need of Gypsy, Roma and Traveller people for overnight stays in different areas, but I certainly would include in a levy scheme short-term holiday lets. I just met the Minister to raise again the issue of short-term holiday lets, and the proper licensing system that we need in that respect.

I believe that this should be a flat-rate levy. I have always said that the price of a cup of coffee could be the benchmark—people would not think twice about going and getting an extra coffee. If it were something like £4, we would bring £6.8 million into our city and that would help our local economy. We will struggle to support our tourism industry otherwise, so I would encourage that factor.

We could use the money to promote the local tourism offer, from which the industry would gain, and could gain substantially. I am talking about putting on events, ensuring that we have better facilities and better infrastructure in our city, and supporting our bid to become a UNESCO world heritage site. All that would benefit not just York, but North Yorkshire and the wider region. It could include putting on projects such as Wild in Art and so on, to draw in even more tourism. I believe that a measure such as that could be seen as an investment in our future.

--- Later in debate ---

[Several hon. Members rose—]

[Clive Efford (in the Chair)]

I am applying an informal three and a half minute time limit. If Members can keep to that, it would help me; otherwise, I will have to impose the limit rigidly.

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Mr Efford. I am incredibly proud to represent the centre of the capital; Ronnie Scott’s, Abbey Road, Tate Britain and all the best museums are right here in the centre of London. Every year, 25 million tourists visit Westminster, spending £1.7 billion to support businesses and residents across London.

This debate has not focused enough on the essential principles of devolution and the role that different organisations play in supporting the tourism industry. We need to hear, again, that nine out of 10 of the most visited tourist destinations in Europe implement a tourist tax. I have listened to the right hon. Member for East Hampshire (Damian Hinds) and the hon. Member for Keighley and Ilkley (Robbie Moore)—although I have to disagree with the hon. Member, because I do think that Brontë country is an international destination, as I am sure many of his constituents will agree—but Hampshire, Hartlepool, Hillingdon and Haworth will not have the same needs as Hyde Park. That is the fundamental principle that we need to focus on today.

I firmly support introducing an overnight visitor levy. It is the right thing to do to enable localities to accurately reflect the particular needs of their neighbourhoods. Taking a local and regional approach means that we have to look carefully at what London might need specifically. Unlike in combined authorities outside London, London borough leaders do not have a formal say in decision making about budgets at the Greater London Authority, so it would be the only major city in the country where local authorities would not have joint decision making over the levy mechanisms. I therefore support the mandation of a 50:50 split, allowing local authorities to keep part of the receipts and enabling boroughs such as Westminster to invest in the vital services that keep the heart of London a world-leading tourist destination. That could include investment in the public realm as well as investment in growth measures—

[Clive Efford (in the Chair)]

Order. There is a Division. I am told to expect six votes, so I must suspend the sitting for about an hour and 15 minutes. If there are fewer, we can come back more quickly. Please come back as soon as the votes are finished.