"Reeves' Budget Plan Would Charge Brits Up to 27% Tax for Overnight Stays in Hotels and Airbnbs"
A proposed tax on hotel stays and Airbnb visits could be a major blow to the UK's hospitality industry. According to reports, Chancellor Rachel Reeves is expected to announce plans in next week's budget that would allow mayors to charge tourists up to 5% of the cost of an overnight stay. This tax would not only affect hotels but also private rentals through platforms like Airbnb.
Critics argue that this will have a regressive effect on consumers, with the total tax bill including standard VAT rates already paying an effective rate of 27%. UKHospitality, which represents thousands of restaurants, hotels, and pubs, has warned that this would lead to higher prices for holidaymakers. The trade body estimates that Britons could pay up to £518m more in additional costs.
While proponents argue that the tax revenue could be used to fund public services like transport and infrastructure projects, opponents see it as an unjust burden on consumers. Kate Nicholls, chair of UKHospitality, has stated that "this holiday tax is little more than a higher VAT rate for holidaymakers" which would only serve to drive inflation.
England would be the first developed country in this category, with Scotland and Wales also introducing similar levies. The changes are set to be introduced using amendments to an existing bill, and government sources claim that it's necessary to address growing concerns about the cost of living. However, critics argue that this is just another example of a "tax on the poor" rather than addressing the root causes of economic inequality.
Reeves' plans come with other changes, including a "milkshake tax" aimed at increasing revenue from sugar-sweetened drinks. The soft drink industry has seen its prices surge due to the current sugar tax, and any further increases could have significant financial implications for manufacturers.
A proposed tax on hotel stays and Airbnb visits could be a major blow to the UK's hospitality industry. According to reports, Chancellor Rachel Reeves is expected to announce plans in next week's budget that would allow mayors to charge tourists up to 5% of the cost of an overnight stay. This tax would not only affect hotels but also private rentals through platforms like Airbnb.
Critics argue that this will have a regressive effect on consumers, with the total tax bill including standard VAT rates already paying an effective rate of 27%. UKHospitality, which represents thousands of restaurants, hotels, and pubs, has warned that this would lead to higher prices for holidaymakers. The trade body estimates that Britons could pay up to £518m more in additional costs.
While proponents argue that the tax revenue could be used to fund public services like transport and infrastructure projects, opponents see it as an unjust burden on consumers. Kate Nicholls, chair of UKHospitality, has stated that "this holiday tax is little more than a higher VAT rate for holidaymakers" which would only serve to drive inflation.
England would be the first developed country in this category, with Scotland and Wales also introducing similar levies. The changes are set to be introduced using amendments to an existing bill, and government sources claim that it's necessary to address growing concerns about the cost of living. However, critics argue that this is just another example of a "tax on the poor" rather than addressing the root causes of economic inequality.
Reeves' plans come with other changes, including a "milkshake tax" aimed at increasing revenue from sugar-sweetened drinks. The soft drink industry has seen its prices surge due to the current sugar tax, and any further increases could have significant financial implications for manufacturers.
I think this is gonna hurt the UK's tourism industry big time 
. Charging Brits up to 27% tax on hotel stays and Airbnb visits? That's just too much 
. What's next, a "rental tax" for people who want to stay with friends or family? 
It seems like the government is gonna make tourists pay more and more, but what are they really solving? I mean, inflation is already a problem, do we really need another layer of costs? 
And what about all those small hotels and Airbnb places that can't afford to absorb this kind of tax? 
It's just not fair, you know? 
I mean, while it's true that these hospitality industries do generate significant revenue, introducing a new tax without considering the ripple effects on consumer prices seems counterintuitive. The fact that England would be the first developed country to implement such a policy makes me wonder if there isn't another angle at play here... perhaps a way to level the playing field for smaller, local businesses that are already feeling the pinch from online marketplaces? And what about the broader implications for the tourism industry as a whole - will this drive more people to opt for alternative accommodations or destinations? Not to mention the argument that this is just another 'tax on the poor'... 
It's all quite complex, really.
I hope there's some way to negotiate this or find a more progressive solution...
a 27% tax on overnight stays in hotels and Airbnb's seems like way too much 
. I feel bad for the consumers who will have to shell out extra cash just to pay for their accommodation. 
i dont get why they cant just find other ways to fund public services instead of slapping on more taxes its not fair to the regular ppl who are just trying to have a good time while vacationing in london or birmingham or wherever 
. some ppl argue it's a good way to fund public services, but idk... isn't that like throwing money out the window in the process? 
my friend went to london last year and paid an arm and a leg for a hotel room now she's gonna have to pay even more if this tax goes through? it's not fair 
the gov should be finding ways to support small businesses instead of taxing them into oblivion 
I've stayed in hostels and Airbnb's when I was traveling abroad and it's always worked out okay. But now they want to add an extra 5% on top of VAT? That's just ridiculous! 
What's the logic behind that? Do they think we're all made of money or something?! 
. The UKHospitality body is right, it'll just lead to higher prices for holidaymakers and that's not cool 
.
. Maybe they should focus on supporting small businesses and local entrepreneurs instead of slapping more taxes on tourists 
It's just another example of how short-sighted politicians can be when it comes to understanding the consequences of their actions. 
think of all those small businesses who are barely holding on 
This tax thingy on hotels and Airbnb is gonna be bad news for Brits. Like, imagine having to pay 27% extra just for staying in a hotel? That's crazy! 