Holiday Accommodation: Taxation
The question
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the Answer of 29 November 2024 to Question 15209 on Holiday Accommodation: Taxation, whether she has received representations from local authorities on providing powers to impose additional (a) surcharges, (b) licensing fees and (c) taxes on (i) hotels and (ii) short-term lets other than through council tax, business rates and business improvement districts.
Answered by Matthew Pennycook
Whilst both hotels and short-term lets are vital to many local economies, some Mayors have called for the introduction of a tourist levy and some local authorities have called for further powers to manage the impacts of short-term lets where they are affecting the affordability and availability of housing to buy and rent.
Areas can introduce a form of voluntary levy on businesses providing overnight accommodation (such as hotels) through setting up an Accommodation Business Improvement District.
The government have also committed to introducing a short-term let register and abolishing the furnished holiday lets tax regime. We are considering what further powers we might give to local authorities to help them respond to excessive concentrations of short-term lets.
As with all aspects of the tax system, any decisions on future tax changes will be taken by the Chancellor in the context of wider public finances.
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