UK Business Groups Unite Against Holiday Tax

In Brief: Several UK business groups have publicly united to oppose the government’s proposed holiday tax, arguing that such measures could reduce visitor numbers and negatively affect the hospitality sector’s revenue and employment.

UK Business Groups Unite Against Holiday Tax – Image Credit Unsplash

A coalition of business, hospitality, tourism, countryside and travel groups urge the UK Government to stop the holiday tax.

On the day that the City of Edinburgh becomes the first city in the UK to introduce a holiday tax, business groups have written to the new Chancellor to warn of the devastating impacts a holiday tax will have on families, jobs, tourism and the economy at large.

Signatories, including UKHospitality, the National Farmers’ Union, Airlines UK, UKInbound, UKEVENTS and the British Independent Retailers Association, said the Government’s proposed holiday tax would be ‘economically and socially damaging’.

Analysis from Oxford Economics estimates that there will be a clear negative impact on businesses and employment across the whole economy – with 33,000 fewer jobs, a hit of £2.2 billion to GDP and a £1.6 billion tax hike in a cost-of-living crisis.

The public are also against the holiday tax, with twice as many people opposing (56%) the tax, as those who support it (24%).

The letter

We write to you as organisations and businesses representing vast swathes of the British economy with one, united message: stop the holiday tax.

“As a coalition, our customers and our businesses will all be directly or indirectly affected by this tax.

“It’s going to hit the great British holiday hard, with holidaymakers suddenly facing an extra £100 on their two-week family holiday. This is money that will be taken out of the wider economy – a foregone meal at the pub, a visit to a local attraction or fares with the local taxi company.

“What applies to a two-week holiday also applies to a night away for a concert or sporting event, a few days by the coast or repeat business travel.

“There are no winners from a holiday tax. Holidaymakers, hotels, B&Bs, guesthouses, holiday parks, pubs, restaurants, shops, tourism, visitor attractions, farm shops, events, music, sports and business travel will all be hit.

“The public want their holidays kept relaxing, not taxing. It’s why a holiday tax is so unpopular, with twice as many people opposed, as those who support it.

“We urge you to drop this economically and socially damaging policy that targets the highest taxed sector in the economy and instead focus on measures to grow our hospitality and visitor economy sectors.”