Manchester and Liverpool Leaders Warn Government to 'Slow Down' on Tourist Tax Plans
Hospitality bodies in Liverpool and Manchester have united to urge the government to take its time over proposals for a national tourist tax, aiming to prevent another policy reversal. Business Improvement Districts in both cities argue that the issue is too complex to rush, emphasizing the need for thorough planning and industry input.
Industry Concerns Over Timing and Impact
Last week, hotels and holiday companies across the country, including many in the North, signed an open letter calling for the government to scrap the tourist tax plans. The policy, supported by several Northern mayors, would allow areas to impose a small charge on overnight stays to fund infrastructure improvements and tourism projects.
UK Hospitality, an industry body, has expressed serious concerns about the timing and impact of the plans, noting that the sector is already grappling with rising costs from other government measures.
Joint Statement from Accommodation Business Improvement Districts
The Accommodation Business Improvement Districts in Liverpool and Manchester have issued a joint statement calling for at least a slowdown in the levy's introduction. They state, "This is too complex an issue to be rushed and we would urge the Government to slow down and think this through. There has been limited opportunity to speak to the business sector it directly impacts; hotels and hospitality."
They highlight that the success of the ABID model and visitor levy in Manchester and Liverpool stems from its private sector leadership, which places the hotel industry at the heart of strategy and gives them a voice. This approach took years of work, consultation, and planning to perfect, resulting in a ground-up model that generates real economic benefits for both cities.
Economic Impact and Future Investments
Over the next two years, the two ABIDs are forecast to invest upwards of £17 million in Manchester and Liverpool, enhancing the cities' appeal to visitors and boosting local prospects through more investment, jobs, opportunities, and civic pride.
However, the statement criticizes the national tourist tax plans as too vague and lacking industry input, warning that they could burden businesses with additional bureaucracy and taxation. The sector is already facing business rates increases, and there is a real risk that poorly planned proposals could undermine city-driven regeneration policies and two years of progress.
Calls for Solid Plans to Avoid Another U-Turn
The leaders emphasize, "We cannot afford another u-turn, we need solid and sound plans to be put in place before any decisions are made. We are working with our stakeholders across the UK but we would say slow down, let’s do this right the first time, not have to pick up the pieces further down the road."
Bill Addy, chief executive of Liverpool BID Company, and Vaughan Allen, chief executive of CityCo in Manchester, have jointly written to the Ministry of Housing, Communities and Local Government to respond to the government's consultation, reinforcing these concerns and advocating for a more measured approach.
