Starmer’s new ‘tax on fun’ set to cost families extra £100 for two-week holiday in UK
Labour’s proposed visitor levy faces fierce opposition from accommodation providers including Butlin’s and Haven, with warnings it will hit struggling families and British tourism
Keir Starmer has proposed increasing Labour’s holiday tax(Image: POOL/AFP via Getty Images)
Sir Keir Starmer has proposed increasing Labour’s holiday tax, leading Tories to say the PM is waging a “war on fun”. The proposed visitor levy would slap an additional £100 or more onto a fortnight’s holiday in the UK. Senior politicians have warned the PM the measure will hammer struggling businesses and could put families off taking breaks in Britain.
Shadow Chancellor of the Duchy of Lancaster Alex Burghart said: “Labour’s holiday tax is a tax on fun. It will hit families in the pocket and drive tourists away from our seaside towns and city breaks.”
At her Autumn Budget, Chancellor Rachel Reeves announced regional mayors would have the authority to introduce visitor surcharges on overnight stays in hotels, Airbnbs and holiday lets.
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But 200 bosses of accommodation providers, including Butlin’s and Haven, slammed the idea in a letter to the Government.
Reform MP Robert Jenrick said: “The last thing businesses and families need is yet another tax.”
A Treasury spokesperson said: “We’re backing hotels and the high street with a £4.3billion Budget package to cap big bill hikes. We will look at how hotels are valued for business rates to make sure the system is fair.”
UK Hospitality chief Kate Nicholls said: “Our guesthouses, B&Bs and hotels are already struggling with crippling business rates bills and this will hit hard working families, communities and make cost of living worse.”
It comes as Starmer urged Britain must “go faster” on defence spending ahead of the fourth anniversary of Russia ’s full-scale invasion of Ukraine .
The PM has already committed to increasing defence spending to 2.5% of GDP next year and 3% after the next election. But he is now mulling bringing forward the 3% target to 2029, after the head of the UK’s armed forces set out the “moral” case for rearmament amid WW3 fears.
Asked about the reports at an event in London on Monday (February 16), Sir Keir would not confirm that he was considering bringing forward the target, but said Europe needed to “step up when it comes to defence and security”.
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