Four North Yorkshire MPs Brand Proposed Visitor Levy a “Tax on Family Holidays”

Four North Yorkshire MPs have written to the Mayor of York and North Yorkshire setting out their opposition to the proposed visitor levy — calling it a “tax on family holidays”.

The Conservative MPs — Kevin Hollinrake, Rishi Sunak, Julian Smith and Alec Shelbrooke — have called on Mayor David Skaith to pause the process towards introducing the levy until detailed impact assessments and meaningful engagement have been carried out.

In the letter, the MPs say tourism is fundamental to North Yorkshire’s economy and identity.

They add:

“It is sustained overwhelmingly by small, independent and family-run businesses operating on narrow margins.

“A tourism levy would amount to a tax on family holidays and on the family businesses that depend on them, at a time when both are already facing significant cost pressures.

“The proposal is simply wrong in principle and should not be taken forward.”

The MPs say a recurring concern raised with them is the “lack of clarity around who would ultimately bear the burden of the levy”.

They add:

“Businesses remain uncertain whether it would apply solely to overnight leisure stays, extend to business travel, or be expanded to capture day visitors through parking, food and drink or attractions.

“Many accommodation providers fear they would be left as tax collectors, absorbing card processing fees and related costs, with no assurance that collection mechanisms would be simple or cost neutral.”

As well as concerns about the cost of administering the levy, the MPs say there is anxiety about how levy income would be treated for tax purposes, with businesses operating below the VAT threshold worried it could push them into VAT registration, with consequences for pricing, competitiveness and long-term viability.

The letter adds:

“Concerns have also been raised about governance and accountability.

“Businesses want to know whether funds raised in their communities would be reinvested locally, or whether revenue would be absorbed into a central pot with limited transparency or influence from those generating it.

“There is strong feeling that, if any such levy were ever imposed, proceeds would need to be clearly ringfenced and demonstrably benefit the places and businesses from which they are raised.”

The letter concludes:

“For these reasons, we do not support the introduction of a tourism levy in North Yorkshire. The current process should be paused, detailed impact assessments published and meaningful engagement undertaken with MPs and local tourism organisations before any further steps are taken.”

In response to the letter, David Skaith, Mayor of York and North Yorkshire, said:

“The Overnight Visitor Levy will be a real game changer. We’ll use this to support our communities while backing our tourism and hospitality businesses.  

“I’ve met with more than 100 businesses and organisations in the sector to hear their concerns and talk about this opportunity.   

“I love York and North Yorkshire, and I would never support anything that I thought would harm the people or businesses here. 

“It’s disappointing that Kevin Hollinrake MP and his colleagues have already jumped to so many conclusions, when we need to come together to make the most of this opportunity.” 

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