Political row as tourist tax on Northumberland holidays moves a step closer

It marks a significant step towards giving mayors and local leaders the ability to introduce a small fee on overnight stays, including hotels, holiday cottages, B&Bs and guesthouses.

Mayors who choose to introduce a levy will be able to invest in what makes their regions special and improve the visitor experience from better high streets to public spaces – including public toilets and parks, cultural events and security and destination promotion.

Money raised through the levy will stay in the local area, giving communities investment in the places and services used by visitors and residents.

But the government will continue to protect lower cost family breaks by requiring the levy to be charged as a percentage rate of the cost of accommodation, rather than as a flat fee, meaning those choosing cheaper accommodation will pay less.

Ten mayors, including North East Mayor Kim McGuinness, have also committed that any levy introduced in their areas would be no higher than 5%, providing certainty for visitors and businesses while preserving local choice.

Ms McGuinness said: “The North East has vibrant cities, stunning coast and countryside in Northumberland and Durham and a welcome that keeps people coming back. A levy here will mean we can compete with rival destinations which already raise money from visitors.

“We want to double the scale of our tourist economy and create thousands of new jobs as we do so. A small amount raised on each overnight stay means we can bring more major festivals to our region, support brilliant local events, improve the visitor experience and showcase the North East to the world.”

The proposal has been opposed by Northumberland County Council’s Conservative administration and four Reform UK-led councils, which together hold a majority of seats in the North East Mayoral Combined Authority’s cabinet.

Cllr Guy Renner-Thompson, chairman of Northumberland Conservatives, said: “We don’t want British families paying more to enjoy a holiday in Northumberland, and we certainly don’t want our hardworking tourism businesses saddled with the bureaucracy of collecting another tax on behalf of the Mayor.

“Northumberland’s visitor economy is worth £1.58 billion a year. It supports thousands of jobs and businesses across our county. We should be encouraging people to visit, not making their holidays more expensive.

“But what concerns us just as much is the extraordinary power grab taking place here.

“Five of the seven councils in the North East oppose this tax, yet Labour is proposing to give Kim McGuinness the power to push ahead regardless.

“This goes completely against the spirit of collaborative devolution that Northumberland signed up to. We were promised a partnership between local authorities, not a system where the Mayor can simply ignore the majority when she doesn’t like their answer.

“It’s supposed to be devolution, not dictatorship. This is more Kim Jong Un than Kim McGuinness.”

Northumberland Conservatives are also demanding assurances that money raised from visitors staying in Northumberland would be reinvested in the county, rather than diverted to fund major events and projects elsewhere in the region.”