Hospitality leaders have warned that the proposed holiday tax, described as 'politically toxic', could turn voters against Labour if implemented. The tax, set to be included in the King's Speech, would allow regional mayors to impose a levy on overnight stays, potentially adding over £100 to a two-week holiday.
Public Opposition
A poll by UK Hospitality (UKH) of over 10,000 people found that 54% of Brits oppose a holiday tax, with only 24% in support. One in five would be put off booking a holiday entirely, and 57% would cancel if the levy added £50 to their bill. UKH warns the tax could 'decimate' the holiday economy, leading to 33,000 job losses and a £2bn GDP hit.
Threat to Labour MPs
The poll also suggests voters are ten times more likely to vote against MPs who support the tax. Key Labour figures, including Health Secretary Wes Streeting and Foreign Secretary Yvette Cooper, could face backlash. In Streeting's Ilford North constituency, 5,864 former Labour voters would be less likely to re-elect the party due to the tax, far exceeding his 528-vote majority.
Industry Reactions
UK Hospitality CEO Allen Simpson called the polling a 'wake-up call' for MPs, noting that the tax is opposed by a majority of constituents and would hit working families hardest. Butlins CEO Jon Hendry Pickup warned that for many, the tax would mean no holiday at all. Meanwhile, a government spokesperson said the final design of the levy has not been decided and that it would allow mayors to invest in local priorities.
