Tourist tax would 'devastate our rural economy'

A Shropshire MP has expressed concern over proposals for a new 'overnight visitor levy' which he said could harm hospitality and tourism businesses in the south of the county.

Conservative MP for South Shropshire Stuart Anderson is calling for Chancellor Rachel Reeves to drop the plans, saying the new levy would push the cost of a two-week holiday up by £100.

The overnight visitor levy, sometimes referred to as a 'tourist tax', is a small fee added to short-term accommodation such as hotels, B&Bs, campsites and holiday lets which is collected by the provider but retained by local authorities.

This money should then be used to fund tourism promotion, infrastructure and public services.

The proposal, which would see elected mayors granted the power to impose the tourist tax if they chose to, was announced in November's Budget and confirmed in the King's Speech last month.

While they would initially affect city regions, the consultation also considers whether areas that opt to become 'foundation strategic authorities' should be included.

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Mr Anderson has urged the Chancellor to abandon her plans due to the impact on tourism and hospitality, echoing similar calls from business associations.

Trade body UKHospitality has warned that it could see holidaymakers taxed an extra £1.6 billion and cost up to 33,000 jobs by 2030. Tourism spending could drop by as much as £1.8 billion and the number of overnight stays fall by nine million, according to research from Oxford Economics.

In March, the latest Scarborough Tourism Economic Activity Monitor revealed that Shropshire's visitor economy generated £1 billion for the local economy in 2025 and supported 9,454 jobs across the county.

The figures also revealed that more than ten million people visited Shropshire in 2025, with almost half of those people staying overnight.

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Mr Anderson said: "People from around the world come on holiday in South Shropshire. From our market towns to our beautiful countryside, South Shropshire offers so much to both tourists and residents, whether on day trips or on longer holidays.

"Last year alone, tourism in Shropshire generated £1 billion for the local economy (and) the industry also supports thousands of local jobs. An overnight visitor levy would devastate our rural economy - including our tourism and hospitality sectors.

"It would also significantly increase the cost of holidays for residents who are already struggling with the soaring cost of living. A new levy will push families to holiday abroad or stay home instead. That means fewer jobs and less money for business."

Steve Reed, Secretary of State for Housing, Communities and Local Government, said last year: "Tourists travel from near and far to visit England's brilliant cities and regions.

"We're giving our mayors powers to harness this and put more money into local priorities, so they can keep driving growth and investing in these communities for years to come."