STEPHEN Metcalfe, MP for South Basildon and East Thurrock, has warned that Labour may be planning to hammer hotels and B&Bs in the local area with a new overnight accommodation tax.
This ‘holiday tax’ would force up the cost of living for hard-working people and threaten jobs across Britain’s tourist industry.
Labour Shadow Minister, Sadiq Khan, called for the ‘introduction of a levy on overnight accommodation’ earlier this month. A similar policy was proposed by the previous Labour Government but was binned after a Conservative campaign.
Hotels and other accommodation are already subject to VAT, corporation tax, business rates and National Insurance. Research estimates that up to 43,000 hotels, hostels and holiday lets across England currently paying £660 million a year in business rates could be affected by the new overnight accommodation levy.
The new hotel levy would not only harm the competitiveness of the UK tourist industry in a global economy but would have a significant negative impact on mobile workers especially construction workers from South Basildon and East Thurrock who may use hotels and B&Bs whilst working on major projects out of the the area.
Commenting, Stephen Metcalfe MP said: “I’m very concerned about Labour’s plans to hammer hard-working people with a new tax. This will not only make it more expensive for my constituents to holiday at home, adding approximately £126 extra to the cost of a two week stay in a reasonably priced hotel, but it will seriously affect those utilising local hotels for their work in South Basildon and East Thurrock or those working out of the area.
“This is therefore not just a holiday tax but a workers tax and I am extremely pleased that this Conservative Government will be opposing it at every available opportunity.”