The South West’s status as Britain’s premier holiday destination faces a significant challenge following the Government’s approval of a new power for mayors and councils to raise a Holiday Tax. As a region where the tourism sector underpins the local economy, the South West is expected to be hit harder than any other part of the country.
With 377,000 people, over 12% of the local workforce, employed in accommodation, food services, and the arts, the impact of this levy extends far beyond, affecting the retail, transport, and administrative support networks that keep coastal and rural communities thriving.
The policy, which was a long-standing proposal from the Liberal Democrats before being adopted by the Labour Government, adds an estimated £60 to the cost of a typical week-long family break in the UK.
Industry data suggests the timing could be critical, as 39% of Britons admit they would consider holidaying abroad if domestic breaks become more expensive. For the small accommodation providers that form the majority West Somerset and Mid Devon’s businesses, the added pressure of compliance costs and a potential drop in visitor numbers threatens to translate into fewer shifts for hospitality staff and reduced turnover for local high streets.
James Wright, an Exmoor farmer and campaigner, said: "Our region relies on tourism to sustain jobs and incomes. Even a modest shift towards overseas travel will cost local jobs, cut wages, and damage already fragile coastal economies. The Liberal Democrats who run our council’s must rule out raising a holiday tax or jobs will be at risk."
Andrew Griffith MP the Shadow Business & Trade Secretary added "By making British holiday breaks more expensive, Labour is driving tourists abroad and punishing the small businesses that are the heart of our coastal towns and rural villages. It is a reckless policy of economic self-harm that puts thousands of local jobs at risk and ignores the reality of the South West's tourism sector." Andrew Griffith, Shadow Business & Trade
The campaign to scrap the levy has gained significant momentum, joining South West Conservative MPs in calling for an immediate policy reversal. They argue that the tax punishes families for choosing to stay in the UK and penalises small businesses simply for operating in their home communities. Residents, workers, and business owners across the region are now being urged to sign a petition to protect local livelihoods and family finances before the next holiday season begins.
SIGN THE PETITION TO STOP THE HOLIDAY TAX: https://bit.ly/stoptheholidaytax
