UK holidays could incur a £12 per night fee under new tourist tax
A new 'tourist tax' could see UK holidaymakers charged up to £12 per person per night, according to reports.
UK citizens and overseas visitors would have to pay the charge, which would be aplicable to UK campsites, caravan parks, and hotels. Although charges are expected to start from £1 per person per night for a campsite, it could escalate to £15 per person per night for a high-end and five star hotel.
MailOnline suggests that Chancellor Rachel Reeves is contemplating the move as a means to plug the Government's Budget deficit.
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Wales is already exploring a visitor levy, with rates varying by local authority. While some cities, including Edinburgh, are also considering their own tourist taxes, with plans to implement a fee from 2026. The city council intends to add a 5% charge to accommodation costs, generating an estimated £50 million annually, the Mirror reports.
If a nationwide model is adopted, it could generate over £1 billion each year for the UK Government, as per TaxPayers' Alliance calculations. UK travellers to some foreign destinations are already subject to a tourist tax, reports Devon Live.
A Treasury spokesperson said: "We do not comment on tax speculation outside of fiscal events."
The revelation comes just a day after reports suggested that Rachel Reeves is considering a significant cut to the Department for Work and Pensions budget, including a substantial reduction in Personal Independence Payments and other disability benefits. This news emerges as rising Government borrowing costs have sparked worries that the Chancellor may not be able to meet her debt and spending targets, necessitating either tax hikes or deeper spending cuts when she presents a fiscal statement at the end of March.
The planned measures are said to include deeper spending cuts than the 5% efficiency savings already outlined for the spending review set to be published later this year, while cuts to the welfare bill are also reportedly being considered. The Chancellor has previously dismissed further tax increases after raising taxes by £40 billion at the Budget in October.