Potential Holiday Tax Looms for English Tourists as Chancellor Considers New Levy
LONDON – English hotels and Airbnb stays could soon face a new tax, mirroring schemes already planned for Scotland and Wales, if proposals currently under consideration by Chancellor Jeremy Hunt gain traction.The potential levy, revealed ahead of the November 26 budget, aims to generate revenue for local authorities and could considerably impact the hospitality industry.
Edinburgh is set to become the first Scottish city to implement a 5% tourist tax starting next July, following legislation passed last year granting councils the power to introduce visitor levies. Wales is also preparing for a similar charge – £1.30 per person per night for most accommodation – beginning in April 2027.
The Chancellor is also expected to broaden the scope of the existing sugar tax to include milk-based drinks, effectively a “milkshake tax,” by ending their current exemption. This move, initially discussed earlier this year, would apply the tax – currently at least 18p a litre on soft drinks containing 5g or more of sugar per 100ml – to beverages like milkshakes.Ther is also consideration to lower the sugar threshold to 4g per 100ml, potentially raising between £50m and £100m in revenue.
A Treasury spokesperson stated, “We do not comment on budget speculation. The budget later this month will build stronger foundations to secure Britain’s future and focus on the priorities of working people: cutting waiting lists, cutting the national debt and cutting the cost of living.”
The proposed taxes come as local authorities seek new revenue streams, while the hospitality sector braces for potential impacts on tourism and bookings.
