North East Mayor Champions Tourist Tax for Local Growth

North East Mayor Kim McGuinness has expressed strong support for the upcoming implementation of a “tourist tax,” which will enable local leaders to levy fees on overnight stays in their regions. This initiative, set to be announced in the UK Government’s Budget, aims to provide mayors with new resources to reinvest in local infrastructure and tourism.

The proposed tax will allow mayors across England to impose a levy on visitors staying in hotels, holiday rentals, bed and breakfasts, and guesthouses. The funds generated will be allocated at the discretion of local authorities, potentially funding transportation, community projects, and events. This policy aligns with Ms. McGuinness’s campaign promises during her election in 2024.

Significance of the Tourist Tax

Mayor McGuinness believes that even a modest levy can significantly enhance the visitor experience in North East England. “Even a small amount levied on each overnight stay will transform the welcome we can give to people coming to North East England from all over the globe,” she stated. She emphasized that this initiative could mark the beginning of a “new era of events and festivals,” which would showcase iconic sites such as Hadrian’s Wall and Durham Cathedral, as well as the region’s picturesque coastlines and the renowned Tyne bridges.

The mayor aims to double the size of the visitor economy, predicting the creation of thousands of new jobs over the next decade. The tax plan is designed to mirror successful models already in operation in international cities like New York and Paris. According to the government, evidence suggests that similar levies have not adversely affected visitor numbers.

Consultation and Next Steps

The new levy will not apply to emergency accommodation, homeless shelters, or registered Gypsy and Traveller sites used as primary residences. Local mayors will also have the authority to exempt additional categories if necessary.

A twelve-week consultation period will follow the announcement, allowing businesses and community members to provide feedback on how the tax will be implemented. This consultation is accessible on the UK Government website and will close on February 18, 2024.

Steve Reed MP, Secretary of State for Housing, Communities and Local Government, commented on the initiative, stating, “Tourists travel from near and far to visit England’s brilliant cities and regions. We’re giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come.”

The introduction of the tourist tax represents a significant shift in local governance, providing mayors like Kim McGuinness with tools to enhance their regions’ appeal and economic vitality. As the consultation period unfolds, the response from the public and local businesses will play a crucial role in shaping the final implementation of this tax.