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Burnham Pressed to Drop Overnight Visitor Levy in Devolution Plan

Industry groups say the levy risks large job losses, fewer domestic holidays, weaker local economies.

Overview

  • UK Hospitality wrote to Prime Minister Andy Burnham on Monday asking him to abandon the overnight visitor levy and warning the charge would cost about 33,000 tourism jobs.
  • Burnham’s 'Rewiring the State' devolution proposal would let mayors and strategic authorities impose a modest charge on overnight accommodation and direct revenues to local projects.
  • Major firms including Whitbread, Greene King and Butlins have publicly opposed the levy, and the TaxPayers Alliance claimed it could cut roughly 20 million holidays and cost the economy up to £6 billion.
  • The All‑Party Parliamentary Group for hospitality and tourism has demanded a full review and meaningful industry engagement, and officials say detailed design, consultation and Treasury and legal checks are still needed.
  • Next steps are likely to include formal consultations and economic scrutiny, with industry alternatives such as a regionally returned 'holiday bonus' under discussion and the potential for immediate effects on jobs and family holiday costs.