Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made with Cabinet colleagues of the potential impact of the introduction of an overnight visitor levy on hospitality businesses.

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 precise design and scope of the power 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. This will inform their decisions and help them to find an appropriate balance between supporting local economic priorities, including tourism, ensuring a levy is affordable, and providing stability and certainty for businesses.

Following consultation, we expect Mayors to publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment.