Cambridgeshire mayor rejects tourism tax plan that could be imposed in wake of Hilton opening
The mayor of Cambridgeshire and Peterborough has vowed not use new powers to tax tourists visiting the county.
Paul Bristow, the Conservative mayor of the county’s Combined Authority, has ruled out using the new measures that would allow him to impose an unlimited tax on overnight visitors to the 1,308 square miles county.
The new tax would come into force in 2028 just months after the much anticipated opening of Peterborough’s new flagship hotel, the Hilton Garden Inn, at Fletton Quays.
The mayor’s comments come after Prime Minister Andy Burnham announced that from 2028, all of England’s 14 regional mayors will have the power to bring in a so-called tourist tax on overnight stays at hotels, B&Bs and holiday lets.
Mr Burnham says that the tax, which will be a percentage of the cost of accommodation and could be used to pay for public services and to maintain infrastructure, will not be capped although he does not expect the rate to be more than five per cent.
But Mr Bristow has vowed that he will not be using the new powers with the hospitality industry already facing a struggle to survive.
He said: “This is not the time to put extra costs on staying overnight in Cambridgeshire and Peterborough.
In a social media post, Mr Bristow stated: “Most Mayors will go ahead with the overnight visitor levy (tourist tax).
"But the UK economy is struggling - hospitality is being impacted by NI rises, business rate hikes and other costs.
He added: “Overnight visitors use pubs, restaurants and visit attractions. We need them!”
The new tax powers would be available just months after the planned opening of the 160-bedroom Hilton Garden Inn at Fletton Quays.
The partly-built hotel has just been sold to Peterborough- based Leisure & Co Hotel Ltd which says it will open as the Hilton Garden Inn Peterborough next summer.
But Stephen Cassidy, the senior vice president for Hilton UK & Ireland, has warned that a new, uncapped tax levy will add more pressure on top of already high energy costs, business rates, and VAT
The new tax has triggered a warning from UKHospitality, the industry’s trade body, has warned that a five per cent overnight levy across England could result in 33,000 job losses and a £2 billion hit to the economy.