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Mayor looking forward to bringing in tourism tax

Peter SaullEast Midlands political editor
News imagePA Media Two lambs and an adult sheep in a grassy field, with Kinder Scout in the background. A branch from a tree hangs down at the front of the shot, partially obscuring one of the lambs' faces. In the distance, there are other sheep and a traditional Peak District wall.PA Media
Visitors to the Peak District could face an extra nightly charge

East Midlands mayor Claire Ward says a tax on overnight stays could raise "millions of pounds every year" to invest in Nottinghamshire and Derbyshire.

In the run-up to the Budget, the government announced that English mayors would get the power to levy a nightly charge.

Ward suggested that a £1 or £2 tax per room could be be used to improve parking provision, bus services and public toilets.

She and other Labour mayors look set to implement taxes but the Tory Tees Valley mayor Ben Houchen has said "thanks but no thanks". Dame Andrea Jenkyns, Reform UK's Greater Lincolnshire mayor, said she had an "open mind" but her initial reaction was not to impose a "tax on holidays for hard-working Brits".

News imageClaire Ward, wearing a red puffer jacket and grey scarf, smiles for the camera. Behind her there is a path, a wooden fence and some trees.
Claire Ward says the money raised will be re-invested in the visitor economy

Kate Nicholls, chairwoman of industry body UKHospitality, has warned a "damaging holiday tax" could "undermine the government's aim to reduce the cost of living".

Ward said she understood the sector's concerns, but argued "if you're spending £100 a night on a room, the difference of it being £101 or £102 is really not going to put you off".

"It's common across the whole of Europe," she added. "People are well used to it when they travel."

The East Midlands contains the Peak District, and the mayor believes the levy could help tackle many of the National Park's "challenges".

The park authority's chief executive, Phil Mulligan, has expressed concerns about levels of funding in the past.

He told the BBC he would support a nightly charge to "help manage the national park" but pointed out that 80% of visitors only come for the day.

Mr Mulligan also said many tourists stayed in nearby Manchester and Sheffield, so a large proportion of the money raised would go to the mayors of Greater Manchester and South Yorkshire.

"We need to co-ordinate with other surrounding mayors," he said.

News imageStreet scene of Bakewell, with cars on a wet road and cloudy skies overhead. On the right of the picture, there is a large Christmas tree. On the other side of the road, there is a Joules shop.
Bakewell's economy is hugely dependent on tourism

In the Peak District's largest town, Bakewell, tourists we spoke to seemed happy to pay a bit extra to stay overnight.

"We have it when we go abroad, so I don't see why we shouldn't have it in this country," one said.

"I don't think you'd really notice it," another added.

Local businesses did not seem overly concerned either.

Matthew Stanhope, who owns Relish cafe, said: "As long as the money's going back into tourism or back into the local economy, that's fine.

"If it's going to go off to be spent on something else, then what's the point of it?"

News imageMatthew Stanhope from Relish cafe, wearing a black shirt and smiling for the camera, stands next to his shiny metal coffee machine with his hand on part of it. On top of the machine, there are piles of takeaway cups, some with Christmas designs. Behind him there are metal shelves, with knives, pots and pans and part of a menu, showing drinks like lattes and mochas. The walls are a striking lime green.
Business owner Matthew Stanhope is happy as long as the money raised is spent locally

Asked whether the proceeds would stay in areas with high levels of tourism, Ward stressed the "whole point" of the levy was to "improve the visitor experience".

But she added "we would look at it right across the region".

The Labour MP for Derbyshire Dales, John Whitby, admitted there was some "nervousness" about the idea of a tourist tax among local businesses.

"If it's a relatively small amount of money per night, I think I would generally be in favour," he said.

News imageNight time view of the Old Market Square in Nottingham. In the foreground, a red tram stopped at the station, with several passengers waiting on the platforms. In the background, the Council House, lit up by blue lights.
A form of tourist tax had already been proposed by businesses in Nottingham

A consultation has been launched to consider various questions, including how much to charge, which accommodation it should apply to, and where the money raised should be spent.

Legislation will need to go through Parliament, and the tourism taxes probably will not be implemented until 2027 at the earliest.

There has already been a campaign to introduce a form of tourism tax in Nottingham, but it is understood that hospitality businesses rejected it in a vote last month.

The BBC has been told that 12 of the city's major accommodation providers voted against the £2 per night levy, while 11 voted in favour.

The overnight charge in the city would have applied to hotels and apartment blocks of a certain size, mirroring a similar scheme in Manchester.

It is unclear what will happen next with the business-led campaign in Nottingham, but it may well be superseded by the mayoral levy.

Ward's tax could apply across Nottinghamshire in Derbyshire, in all forms of overnight accommodation, including BnBs and potentially even campsites.

She said the details of her tax were all "open for discussion", and there was a "huge amount" of work to do.

But she added: "We're chomping at the bit, because this will allow us to put more investment into the region and that will improve things."

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