Visitor Levy
The question
To ask the Chancellor of the Exchequer, whether her Department has undertaken modelling on the potential impact of introducing an overnight visitor levy on a) high street footfall, b) numbers of empty shops and c) social mobility.
Answered by Dan Tomlinson
The Government has announced powers for Mayors to introduce a visitor levy on short-term overnight accommodation in their region, to drive economic growth, including through support for the local visitor economy.
At Budget, the Government published a consultation so that the public, businesses, and local government could shape the design of these powers, including options to minimise the burden on businesses and communities. This consultation closed on the 18th of February and the Government will publish a response in due course.
The precise design and scope of the power for Mayors to introduce a visitor levy is still under development, and the impacts of the levy will largely be determined by local decisions. Evidence from international and domestic schemes suggested modest rates have minimal impact on visitor numbers. Mayors will decide whether to introduce a levy and, if so, consult on specific proposals. We expect Mayors to engage constructively with businesses and their communities to hear any concerns. Following consultation, we expect Mayors to publish a summary of the consultation results and their response, including a final prospectus, and an impact assessment.
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