Scarborough Town Council Objects To Proposed Overnight Visitor Levy

Scarborough Town Council has written to the Mayor of York and North Yorkshire to express its strongest possible objection to the proposed introduction of a tourist tax.

Scarborough Town Council has issued a formal letter to the Mayor of York and North Yorkshire, David Skaith, expressing its strongest possible objection to the proposed introduction of an overnight visitor levy.

The proposed 'tourist tax' has sparked significant concern among local councillors, who argue that the coastal town's economy relies heavily upon tourism and hospitality. The council says it firmly believes that the town’s visitor economy should not be treated as a revenue source for a wider regional authority.

During a full council meeting on the 23rd of June 2026, Councillor William Stuart proposed the recommendation to write to the Mayor, a motion which was seconded by Councillor Mason. The motion set out the council's opposition to any visitor levy affecting Scarborough and its coastal communities.

Councillor Stuart outlined the pressures already facing local hotels, guest houses, bed and breakfasts, and caravan parks, highlighting rising wage costs, increased National Insurance contributions, higher energy costs, and inflation.

Speaking at the meeting, Councillor Stuart said:

"The last thing these businesses need is another tax to administer, another collection system to operate and another layer of bureaucracy."

The letter sent to Mayor Skaith echoes these sentiments, stating that businesses are already reporting reduced visitor spending and shorter average stays. The council warned that an additional visitor levy would place further strain upon an already fragile sector.

The correspondence also highlighted the risk of discouraging visitors and damaging the town's competitiveness. The council noted that Scarborough has long been recognised as a traditional and accessible holiday resort, attracting visitors precisely because it offers comparatively affordable stays for working families.

The letter to the combined authority Mayor stated:

"Adding further charges to overnight accommodation risks discouraging visitors, reducing overnight stays, lowering visitor spending and undermining business confidence. The Council is deeply concerned that such a levy would weaken Scarborough’s long-term competitiveness against other coastal destinations which do not impose additional tourism charges."

Furthermore, the council expressed particular concern about the disproportionate impact a visitor levy would have upon lower and middle-income families during the continuing cost-of-living crisis. The letter explained that visitors already face increasing travel, fuel, and parking costs when holidaying in coastal communities, and further charges risk pricing some families out of visiting altogether or encouraging shorter stays.

The administrative burden on local accommodation providers was another major point of contention. The council argued that running tourism businesses in seaside towns is highly demanding, particularly for small independent operators who form the backbone of the local visitor economy.

The letter detailed that business owners manage significant regulatory and financial pressures daily. The council argued that rather than creating new layers of regulation, the priority should be reducing barriers to growth and supporting local enterprise.

Addressing the potential use of the revenue raised, the town council raised serious concerns regarding accountability. The letter stated that Scarborough businesses and residents would rightly expect any revenue generated locally to be reinvested directly into the town's tourism economy and infrastructure. However, councillors fear the funds could be absorbed into wider regional spending priorities without delivering meaningful benefit to the town itself.

Addressing this point during the council meeting, Councillor Stuart said:

"Let me make myself completely clear, even if every penny raised were guaranteed to come back to Scarborough, and even if Scarborough Town Council itself controlled how that money was spent, I would still oppose the levy. Visitors already contribute enormously to Scarborough through the money they spend in our hotels, restaurants, pubs, shops and attractions. Local businesses already contribute through taxation, employment and investment in the town."

The letter concluded by noting that residents have already faced consecutive council tax increases up to or near the referendum threshold. The council stated that Scarborough's tourism industry is one of the town's greatest economic assets and a vital source of employment and investment, arguing it should be supported and encouraged rather than subjected to additional taxation.

Letter from Scarborough Town Council to the Combined Authority Mayor

David Skaith
Mayor of York & North Yorkshire
County Hall
Racecourse Lane
Northallerton
DL7 8AD

Dear David,

On behalf of Scarborough Town Council, I write to express our strongest possible 
objection to any proposal to introduce a visitor levy or ‘tourist tax’ affecting
Scarborough and its coastal communities.

Impact on Scarborough’s Visitor Economy
Scarborough’s economy is heavily reliant upon tourism and hospitality, and the Town
Council firmly believes that the town’s visitor economy should not be treated as a
revenue source for a wider regional authority. Local hotels, guest houses, B&Bs,
caravan parks, restaurants and attractions are already under considerable pressure
from rising operational costs, inflation, staffing shortages and changing visitor
behaviour. Businesses are also reporting reduced visitor spending and shorter
average stays. Against this backdrop, the introduction of an additional visitor levy
would place further strain upon an already fragile sector.

Risk of Discouraging Visitors and Damaging Competitiveness
The Town Council opposes the introduction of a visitor levy in Scarborough because
the town’s economy depends upon remaining an affordable and competitive seaside
destination for working families. Scarborough has long been recognised as a
traditional and accessible holiday resort, attracting visitors precisely because it offers
comparatively affordable stays and attractions.
Adding further charges to overnight accommodation risks discouraging visitors,
reducing overnight stays, lowering visitor spending and undermining business
confidence. The Council is deeply concerned that such a levy would weaken
Scarborough’s long-term competitiveness against other coastal destinations which
do not impose additional tourism charges.

Impact on Working Families During the Cost-of-Living Crisis
The Council is particularly concerned about the disproportionate impact that a visitor
levy would have upon lower and middle-income families during the continuing cost-
of-living crisis. Visitors already face increasing travel, fuel and parking costs when
holidaying in coastal communities. Introducing further charges risks pricing some
families out of visiting altogether or encouraging shorter stays, with direct
consequences for local businesses and employment.

Additional Burden on Local Businesses
The Council is also deeply concerned about the additional administrative burden that
a visitor levy would impose upon local accommodation providers. Running tourism
and hospitality businesses in seaside towns such as Scarborough is already highly
demanding, particularly for the many small independent hotels, guest houses, B&Bs
and caravan operators which form the backbone of the local visitor economy.
Business owners are already required to manage significant regulatory, financial and
operational pressures on a daily basis, including rising energy costs, staffing
shortages, inflation, insurance increases, licensing requirements, taxation, online
booking platforms and changing visitor expectations. Many operators work
exceptionally long hours simply to keep their businesses functioning and financially
viable.

The introduction of a visitor levy would inevitably create further bureaucracy,
additional paperwork, reporting requirements, collection responsibilities and
compliance obligations. This represents yet more red tape for businesses already
struggling not only with the day-to-day running of their operations, but with remaining
commercially sustainable in an increasingly difficult economic climate.
At a time when hospitality businesses across the country are facing closures and
financial hardship, the Council believes it would be wholly wrong to impose additional
administrative and financial burdens upon an industry already under severe
pressure. Rather than creating new layers of regulation and bureaucracy, the priority
should be reducing barriers to growth, supporting local enterprise and helping
businesses remain viable, competitive and able to continue providing employment
within the local economy.

Concerns Regarding Local Benefit and Accountability
There are serious concerns regarding accountability and the ultimate use of any
funds raised. Scarborough businesses and residents would rightly expect any
revenue generated locally to be reinvested directly into Scarborough’s tourism
economy and infrastructure. However, there remains understandable concern that
funds raised from Scarborough’s visitor economy could instead be absorbed into
wider regional spending priorities without delivering meaningful or proportionate
benefit to the town itself.

Opposition to Further Taxation
Residents have already faced consecutive council tax increases up to or near the
referendum threshold, while businesses continue to face wider taxation and
operational pressures. In that context, the Council does not believe additional forms
of taxation are either justified or necessary. The priority should instead be supporting
economic growth, strengthening the tourism economy, encouraging investment and
ensuring existing public funds are used effectively and efficiently.

Conclusion
Scarborough’s tourism industry is one of the town’s greatest economic assets and a
vital source of employment and investment. It should be supported and encouraged,
not subjected to additional taxation and regulation which risk damaging overnight
stays, visitor spending, business confidence and the town’s long-term economic
competitiveness.

For these reasons, Scarborough Town Council objects in the strongest possible
terms to the introduction of any visitor levy affecting Scarborough and its coastal
communities.

Yours sincerely,
Scarborough Town Council

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