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UK government ‘considering new $23 per night tourist tax to plug budget deficit’

Aussies heading to the UK could be hit with a new tourist tax when staying in campsites and hotels.

Welsh tourist tax sparks concerns over job losses and industry impact

Holidaymakers including Aussies heading to the UK could be hit with new tourist tax when staying in campsites, hotels and B&Bs.

The government is reportedly considering the move as it could raise an estimated £1 billion - AU$2 billion — as the UK’s economic growth flatlines.

Chancellor Rachel Reeves hopes the tax will ease pressure on government spending. Picture: Aaron Favila / POOL / AFP
Chancellor Rachel Reeves hopes the tax will ease pressure on government spending. Picture: Aaron Favila / POOL / AFP

The new scheme would start from £1 - AU$2 - per person at a campsite and would escalate to £15 - AU$30 - per person at a five-star hotel.

Both UK residents and holidaymakers from abroad will be required to pay the new tax, which will make staycations a little bit more expensive.

The government, though, hopes the tax will raise a significant amount of money for public spending.

According to the TaxPayer’s Alliance, the move has the potential to raise an estimated £1 billion - AU$2 billion - a year.

Staycations could become more expensive with the new tax.
Staycations could become more expensive with the new tax.

However, there is one UK city that already has a tourist tax.

Visitors to Manchester must pay the City Visitor Charge (CVC), which requires visitors to pay £1 - AU$2 - per room, per night.

According to spokesman Kumar Mishra, the money raised by the CVC was used to clean Manchester’s streets and to market the city.

Other cities, including Edinburgh, are reportedly considering their own tourist taxes.

Other cities, including Edinburgh, are reportedly considering their own tourist taxes.
Other cities, including Edinburgh, are reportedly considering their own tourist taxes.

Speaking in China on January 11, 2025, Ms Reeves did not comment on the rumoured tax but did say that “growth is the number one mission” of the Labour government.

The chancellor added that her budget is “non-negotiable” and that it is part of her wider plan to achieve “economic stability” and “growth”.

It is hoped that the tax will support government spending, as the economy shows signs of flatlining.

When asked about the rumoured tax, the treasury said: “We do not comment on tax speculation outside of fiscal events.”

This article originally appeared on The Sun and was reproduced with permission

Original URL: https://www.news.com.au/travel/travel-advice/uk-government-considering-new-23-per-night-tourist-tax-to-plug-budget-deficit/news-story/a1d2eaf0a00c5165aade13402db09ecc