Reeves is set to cave in to internal pressure and allow mayors and local authorities to impose tourist taxes on hotels etc., raising the effective consumer tax rate on overnight. After briefing she wouldn’t…
It was briefed in July that Rayner was in a battle with the Treasury, which had blocked the plans and would continue to do so on the grounds that they would be too damaging to businesses. Guido caught wind at Labour Conference of a renewed effort by MHCLG to persuade Reeves’s team to go ahead with it. So a Treasury denial isn’t worth the paper that it is written on…
The Times now reports that the tax powers will in fact go ahead through amendments to the English Devolution and Community Empowerment Bill. A 5% tourist tax rate will impose a 27% effective levy on all overnight stays. You can thank the clown Chancellor…
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