Tourist tax fears in seaside town 'scaremongering'

A Labour council leader has accused opposition Tories of "scaremongering" over the possible impact a tourist tax could have on businesses in Southport.

Liverpool City Region metro mayor Steve Rotheram is introducing an overnight levy for hotels and holiday accommodation from 2028.

His Labour colleague, Sefton Council leader Marion Atkinson, said it would be a "great source of revenue" which would stop councils "having to go to government" for funding.

However, the Conservative opposition, led by Mike Prendergast, warned the levy could damage trade in the coastal town.

In a motion due to be debated later at a full council meeting, Prendergast said: "The majority of the tourism economy in Sefton, in towns such as Southport, is built on short stays, affordability and, very often, small family-run accommodation which operate on tight margins in a price sensitive environment."

Calling for the tourist tax plans to be scrapped, he warned that were it to be introduced, any money raised in Southport should not be spent on projects in Liverpool, but kept within Sefton.

Atkinson dismissed Prendergast's objections to the tourist tax as "scaremongering".

She said the details of the levy had not yet been finalised and said: "Why would they jump and say we don't want this when they don't know the detail?

"I don't think it will put people off staying in Southport.

"This is scaremongering. The reality is we have got so much going on in Southport, there's a cost and this is part of the way to generate local revenue, as long as it's spent in those areas."

Her comments hint at some future disagreements between the city region's council leaders when it comes to allocating funds generated by a tourism tax.

Last year, Mary Rasmussen - a Liverpool councillor and chair of the city council's finance and resources scrutiny committee - said: "It will be very interesting and something we should keep our eye on, on how that levy is spent because it will be spent across the piste, the whole combined authority, while most of the hotels and staying places will be in Liverpool.

"We need to understand how that's worked out fairly but to make sure we as Liverpool get our fair share."

Speaking at the time the government announced the levy, deputy leader of Liverpool city council and cabinet member for finance Ruth Bennett said 80% of the region's hotels were based in Liverpool.

As a result, she said the council's position would be that it retains the same proportion of the funds generated.

Speaking on BBC Radio Merseyside earlier, Atkinson said that while all council leaders in the city region were "part of one big family", there needed to be discussion and consultation about where the money was spent.

She said she did not doubt that each of the six city region council leaders would make a robust case for their area.

Atkinson said: "We may be a big family in the city region, but we are also leaders of our boroughs - so until the detail comes out, we'll all be putting in our views.

"When people come to the Grand National, that's actually in Aintree, the Open (which is taking place in Ainsdale this year) that's not in Liverpool.

"Let's have a look at the detail and then as leaders we can take those decisions.

"It's got to be good - and it happens all over the world."

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