The Labour Party's proposed tax changes could see the cost of caravan holidays in the UK rise by up to 100%, according to industry experts. The government plans to permit regional mayors to impose an “overnight visitor” charge on top of existing VAT, which would significantly increase the price of budget-friendly accommodations such as caravans and tents.
Impact on Low-Income Families
Simon Palethorpe, chief executive of Haven, warned that a flat-rate model would disproportionately affect the cheapest breaks. “Our cheapest breaks start at £49 for four days. A £2 per-person, per-night holiday tax would disproportionately affect the lowest-priced breaks,” he said. “For example, on some of our entry-level holidays, a family of four could see the price increase from around £49 to over £80 – a 65pc increase. I fear this will prove difficult to afford for some hard-working families looking to holiday in the UK.”
Industry Concerns
Debbie Walker, director-general of The Holiday and Residential Parks Association, noted that “holiday parks and campsites offer some of the most affordable holidays in the UK.” However, she expressed concern that the government's tax plans risked “pricing some people out of breaks at a time when money is tight.”
Allen Simpson, chief executive of UKHospitality, added: “Holidays are for relaxing – not taxing. Whether you enjoy a city break, a rural retreat or building sandcastles on your beach holiday, you’re already paying your fair share of tax. In fact, it’s one of the highest tax rates for visitors in Europe and the holiday tax will only increase that further. We are so lucky to enjoy these wonderful islands and we should be encouraging people to visit every part of our country – not taxing them for doing so.”
Government Response
A government spokesman stated: “This is speculation because the final design of the visitor levy has not been decided. The levy will mean local people benefit even more from tourism to their area and mayors will be able to invest in local priorities.”
