Fears have been expressed by Solihull councillors that the borough would not receive its fair share of revenue from a proposed tourism tax on hotels and attractions. A motion calling for the council to support the implementation of a visitor levy was defeated during a recent scrutiny board meeting, highlighting significant divisions over the policy.
Motion Defeated Amid Financial Concerns
The motion, brought forward by Liberal Democrat Councillor Laura McCarthy, urged Solihull Council to recognise that a modest visitor levy could provide a fair and sustainable source of income. This initiative follows the announcement of a national tourism levy consultation in Chancellor Rachel Reeves' November budget, which is set to conclude next month. The proposed levy would empower mayors across the country to charge visitors for overnight stays in hotels, holiday lets, and B&Bs within their areas.
Councillor McCarthy argued that Solihull, with a visitor economy valued at over £1 billion according to figures from the West Midlands Growth Company, should capitalise on its tourism appeal. She emphasised the financial strain facing the council and suggested that a levy could generate funds to improve local facilities used by residents daily, provided the money was ring-fenced for Solihull's benefit.
Hospitality Sector and Political Opposition
However, the motion faced strong opposition from both the hospitality industry and several councillors. Roy Nash, representing the Arden Hotel located near Birmingham Airport and the NEC, voiced practical concerns. He stated that even a small additional charge could negatively impact average room rates, especially in the current economic climate, potentially deterring visitors.
Conservative councillors echoed these worries, with Councillor Edward Fitter criticising the levy as a tax that would increase costs for working people and harm the hospitality sector. Councillor Shanin Ashraf offered a contrasting perspective, citing positive experiences with tourist taxes in Switzerland, where such levies finance tourism infrastructure without burdening local residents.
Debate Over Funding Allocation
A key point of contention was the allocation of any revenue generated. Leader of the Conservative-run authority, Karen Grinsell, expressed concern that funds raised in Solihull might not be spent within the borough, a sentiment reinforced by Councillor Andrew Burrow. He argued, based on his experience on the West Midlands Combined Authority board, that Solihull would not receive its fair share, effectively creating a tax on the borough to be spent elsewhere.
Claire Rudge, the authority's group manager for economic growth, noted that early conversations with the West Midlands Combined Authority indicated the levy could generate an £8 million pot to be spent across the region. This raised further questions about distribution, with Councillor Alan Feeney objecting on principle, suggesting that even a small charge might drive visitors to competing destinations.
Outcome and Future Steps
Despite the motion's defeat, the scrutiny board agreed to submit responses to the national consultation on the tourism levy. Deputy leader Councillor Ian Courts warned against losing visitors to other areas, emphasising the need to protect Solihull's competitive edge. The debate underscores broader challenges in balancing revenue generation with economic sustainability and equitable funding in local governance.
