But in the vanguard of that “help”, we see the Government is drafting up plans for a new taxation scheme to slap onto the already overburdened shoulders of the hospitality sector in the form of a tourist tax - a levy that will allow local authorities to apply to any overnight stay in their area.
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And better still, it’s going to be an uncapped percentage - allowing local authorities the, cough, discretion to set as they see fit.
I can see Westminster Council, the ones who allegedly want to ban vertical drinking, rubbing their hands with glee at being handed a new club to beat the sector with.
Risking jobs
But don’t worry, as ministers behind the decision “are said to believe mayors are unlikely to make it too expensive”. Of course they won’t.
The trade associations have come out fighting, warning the move could put a further 33,000 hospitality jobs at risk, on top of the hundreds of thousands already lost by the increased taxation at the last two Budgets. They are also warning of a £2.2bn hit to the economy as well.
Now, I’m no expert on cavalry charges and I understand the Light Brigade have a poor track record in this area, but Andy Burnham’s new Government seem to be giving them a bit of a run for their money.
When is this Government, and any other, going to recognise the hospitality sector is not the cash cow it seems to think it is, and increasing taxation is only going to result in one thing? And just to spell it out for the recently departed Ms Rachel Reeves, it’s not growth.
Mood music
Mr Burnham has promised support, but so far, that support has been limited to ineffectual tokens that won’t come into effect until April next year, and oft promised reform down the line.
So far, beyond warm words, Tik Tok videos and an increased interest in MPs having pictures taken in pubs, the sector has yet to see any real meaningful change in taxation policy, if anything there appears to be a move to down play the previous promises, with ministers warning VAT reductions were going to be hard to pay for.
The sector doesn’t want support, it wants fairness on taxation and introducing further tourist tax levies shows an abject failure from this Government to listen to the mood music of the sector and wider economy.
