Kevin Hollinrake, the MP for Filey, has issued a stark warning regarding the future of the Yorkshire Coast’s hospitality industry, expressing his total opposition to a proposed new tourism tax.
The MP argued that the sector is already facing an unprecedented struggle due to existing financial pressures and that further taxation could prove catastrophic for local businesses.
According to Mr Hollinrake, the current tax landscape has reached record levels, creating a difficult environment for both individuals and business owners. He has been vocal in his disapproval of the fiscal direction taken by the government, noting that the UK is seeing tax levels at 38.2% of GDP. He believes that adding a tourism levy would only introduce further complexity to a sector that is already grappling with significant economic headwinds.
In a direct assessment of the situation, Mr Hollinrake stated:
"I'm totally against it. I think there are enough taxes both in terms of the level of taxes now imposed on businesses and individuals.
I think we're record levels 38.2% of GDP, record levels of tax. And so I criticize my own government for that. So I have no problem criticizing this government for that. It's totally the wrong thing.
And this is another tax, another complexity against a backdrop of a rising number of challenges particularly for retail, leisure, hospitality, all who will be affected by such attacks."
The MP’s concerns are rooted in the cumulative burden placed on the hospitality trade. He highlighted that many establishments are struggling to survive a "perfect storm" of rising costs. Specifically, he pointed to:
- Substantial increases in business rates, which he claims have risen by an average of £11,000 for pubs compared to last year.
- The impact of the "jobs tax" and upcoming legislation like the "employment race bill".
- The administrative burden and "bureaucracy" involved in collecting new levies.
Mr Hollinrake emphasized that if these businesses are to remain viable and continue contributing to the wider economy, the focus must be on reducing their burdens rather than adding to them with a new tourism tax.
Reflecting on the fragility of the industry, he commented:
"Pubs and hospitality are now at just a breaking point with the jobs tax with the business rates increase which I think the average pub is now £11,000 higher in terms of business rates than it was a year ago and the employment race bill coming down the track as well which all very damaging.
If you want these things to stay alive and we do hugely important part of the wider economy then we need to make sure that the burdens on them are as little as possible both in terms of the tax itself which is bound to be a disincentive but also the bureaucracy around collecting it.
So Definitely would support any moves to try and push back on it."
Mr Hollinrake concluded by confirming his commitment to supporting efforts that resist the introduction of the tourism tax, citing it as a major disincentive for the very industries that define the coastal economy.
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