Overnight Visitor Levy: Rural and Coastal Communities

5. What discussions she has had with Cabinet colleagues on the potential impact of an overnight visitor levy on rural and coastal communities.

I have had discussions with ministerial colleagues across Government and spoken to mayors and a range of tourism representatives. The Government are committed to giving powers to local areas to enact an overnight levy, and we will work closely with the Ministry of Housing, Communities and Local Government and HM Treasury on developing the policy.

Rural and coastal communities are particularly reliant on seasonal tourism. If Members look at my registered interests, they will see that I used to run one of those businesses. Do the Government not understand that it is already tough enough out there, without them thinking up a new tax on holidays? Instead of ploughing on regardless, will the Government commit to publishing an independent assessment on the impact on businesses before any new tax is introduced?

I was in Blackpool last week discussing the issue with representatives of the sector and I visited the hon. Gentleman’s constituency a few years ago, so I know how important tourism is to coastal communities up and down the country. Introducing a levy will be up to local areas, and it will make sense for those areas to invest the funds generated in improving the local tourism offer, as many have already committed to doing.

Hotels in my constituency are largely in favour of an overnight visitor levy, on the proviso that the money is ringfenced for tourism purposes, not lost to the black hole of local authority or strategic authority finances. What reassurances can the Minister give hotels in my constituency?

As I just outlined, it will of course make sense for those funds to be reinvested in local tourism, but that will be a decision for local areas. That is why we are working closely with the Treasury and MHCLG, so that local areas can be empowered to make the decisions that are right for their areas.

I welcome the new shadow Secretary of State, my hon. Friend the Member for Reigate (Rebecca Paul), and the new shadow Minister, my hon. Friend the Member for North West Norfolk (James Wild), to their places. May I take this opportunity to thank the Secretary of State and her team for their constructive engagement with me over the last year? However—there is always a “however” with me—on Tuesday the new Prime Minister committed the Government to bringing in a new holiday tax. On Wednesday, he told the House that he was helping businesses by cutting taxes, yet we all know that business rates and national insurance are increasing, which is destroying over 100,000 jobs in tourism and hospitality alone. In what crazy Labour universe is it possible for the Prime Minister to claim that he is cutting taxes when the Government are actually increasing them and bringing in entirely new taxes?

I am grateful to the hon. Gentleman, and I pay tribute to him for all his work as the shadow Secretary of State and as a Minister before that. It has been a pleasure to work with him, and I look forward to continuing to do so. Of course, there is more than one tax; we are cutting taxes, but we are also introducing an overnight levy. As I have outlined, we are working across Government, with the tourist sector and with mayors to make sure we get that right for local areas. It of course makes sense for that money to be reinvested in the tourism sector, but that will be up to local areas to decide.

I think rural and coastal communities can be encouraged by the success of the city visitor charge in Manchester, where we have raised £10 million for investment in advertising, tourism and cleaning the city. Will the Minister join me in rejecting the scaremongering and reminding people that this is a purely permissive measure? It is up to local areas to do it if they want.

I am grateful to my hon. Friend, who is an excellent champion for his city of Manchester. He shares a really important example. It is right to caution against scaremongering. It is absolutely right that local areas have the powers to make the decisions themselves.