Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has (a) undertaken and (b) commissioned an impact assessment on the potential effects of introducing an overnight visitor levy on the hospitality and tourism industry.

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.

At Budget, the Government published a consultation so that the public, businesses, and local government could shape the design of these powers, including options to minimise the burden on businesses and communities. This consultation closed on the 18th of February and the Government will publish a response in due course.

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. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. 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.