Derbyshire Conservatives criticise Government and EMCCA ‘tourism tax’ plans for overnight visitors

Derbyshire Conservatives have criticised the Government’s and East Midlands Mayoral plans to introduce a tourism levy for overnight visitors to the region – including the popular Peak District – as part of the Chancellor’s recent Autumn budget announcement.

The Labour Government aims to introduce the levy on overnight trips – dubbed as a ‘tourism tax’ – to help mayors boost growth, including the Labour’s East Midlands Combined County Authority’s Mayor Claire Ward who oversees Derbyshire and Nottinghamshire.

But Derbyshire County Council Conservative Group Leader, Cllr Alex Dale, has written to the East Midlands Mayor urging her to abandon the plans for a so-called ‘tourism tax’ that he claims would hit overnight visitors and damage Derbyshire’s vital visitor economy.

Cllr Dale said: “This so-called tourism tax is exactly the wrong idea at exactly the wrong time.

“Labour is already hammering small businesses with higher taxes, higher National Insurance and rising costs. Now the Mayor wants to add another charge that risks putting visitors off staying in Derbyshire altogether.

“Tourism isn’t something to be squeezed, it’s something to be backed. A tax on visitors is a tax on local jobs, local businesses and local communities.

“Derbyshire’s visitor economy is worth billions and supports tens of thousands of jobs locally. Undermining it would be economically reckless.

“Derbyshire Conservatives will always stand up for our hospitality sector and rural communities and we are calling on the Mayor to drop this proposal immediately.”

The Government has argued the levy will give mayors new power to invest in their areas and drive growth through a charge on overnight stays which will put local leaders on an equal footing with top tourist destinations around the world, and it is another step towards putting power in the hands of those who know their communities best.

It also says that the levy will allow mayors to be able to invest the money into transport, infrastructure and the visitor economy.

However, Derbyshire Conservatives claim Labour’s latest proposal will place further pressure onto small businesses, hospitality venues and rural communities that rely heavily on tourism at a time when they are already struggling under higher taxes, rising costs and increased National Insurance.

Cllr Dale claims the Peak District and wider county attract millions of visitors every year, generating £3.58 billion for the local economy and supporting more than 33,000 jobs across hotels, bed and breakfasts, pubs, restaurants, shops and visitor attractions.

He also claimed that overnight stays grew by around 14 per cent last year driving growth in market towns and villages across the county.

Cllr Dale added Derbyshire Conservatives say a new overnight levy risks deterring visitors, pushing them towards other destinations and undermining jobs and investment locally.

His letter to the East Midlands Mayor follows similar concerns raised by Conservative colleagues in Nottinghamshire and adds to growing regional opposition to the plans, according to Cllr Dale.

Reform UK-controlled Derbyshire County Council’s Deputy Leader, Cllr Rob Reaney, said: “The decision on whether to levy a tourist tax will be one for the East Midlands Mayor, rather than the county council. But my own view is that we wouldn’t want to see one levied in Derbyshire.

“We are very proud of our county, and delighted to welcome visitors to enjoy their time here.

“We’ve a lot of small businesses in the tourism sector who are feeling the pinch, and this could just be one step too far. Aside from the practicalities of actually administering a scheme like this, we want to do all we can to encourage more people to visit us – not less.

“I am sure that over the course of the next few months we will be having conversations with our colleagues at East Midlands Combined County Authority, and I would further hope that any proposals would be put out for public consultation.”

Businesses, communities and others with an interest in the plan will be able to have their say as part of a consultation running for 12 weeks.

Some have raised concerns about how any money raised from the levy would be reallocated and whether it would actually be reinvested back into the same areas from where it was sourced.

A Peak District National Park spokesperson said: “The Peak District National Park Authority notes the Government’s intention to explore a visitor levy for overnight stays within the East Midlands.

“As with any proposal that could influence the visitor economy, we would welcome early clarity on how it would operate and how any revenue raised within the national park and wider Derbyshire would be allocated.

“The Peak District National Park is a nationally significant landscape that hosts more than 13 million visits each year, placing substantial demands on paths, habitats, roads, and visitor facilities.

“If an East Midlands visitor levy is introduced, funds raised within the national park and its surrounding area must be reinvested back into supporting this special place.

“Many visitors stay just outside the park boundary, but spend much of their time inside it, so any levy should recognise this and ensure that revenue supports the Authority’s work – not just the locations where visitors stay overnight.

“If such a scheme proceeds, we would expect all the surrounding regional mayors to collaborate and allocate resources for the furtherment of the national park’s objectives, as many visitors to their respective areas make use of the national park during their stay.

“We remain committed to working constructively with regional partners and the East Midlands Combined County Authority to ensure that any future investment mechanisms deliver clear and tangible benefits for the national park, its residents, and the millions who come here to enjoy it.”

The Labour Party has argued that the East Midlands Mayor and England’s mayors will be able to invest in transport, infrastructure, and the visitor economy through the new levy.

It would be up to mayors and local leaders to introduce a modest charge if they feel it is right for their area, according to the Labour Party, which has also argued that it would give mayors the same powers as cities like New York, Paris and Milan.

Secretary of State for Housing, Communities and Local Government Steve Reed said: “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.”

The Government has argued that England attracts over 130 million overnight visits each year and any new levy would apply to visitors at accommodation providers including hotels, holiday lets, bed and breakfasts, and guest houses.

It claims research shows reasonable fees have minimal impact on visitor numbers and it claims money raised could help fund local projects to improve communities and enhance tourists’ experiences which could help attract more visitors without needing Government approval.

East Midlands Mayor Claire Ward said: “We want more people to visit the East Midlands, and the power to introduce the new visitor levy would give us more money to invest locally to support additional transport and visitor attractions and to address parking challenges – all at a very minimal cost to those who come to visit, but with locals feeling the benefits.

“There is no sense in Westminster being in charge of determining what we need: we know, and we will get on with it.

“It is very early to know the details of how it will work – indeed the Government is launching a 12-week consultation asking businesses, communities and others with an interest in the measure to have their say on how it should work, and we will examine that feedback with interest.

“This is a significant change and it’s important to consult. We are working with the sector to build Visit East Midlands, and I look forward to engaging with the same partners to ensure that any levy is introduced in a way which works for the local visitor economy.”

Ms Ward has stated the power to introduce the levy will allow EMCCA to decide ‘how to invest, directly, into making places great areas to live, work, and visit, supporting our ambition to grow the visitor economy by £1 billion’.

Visit Peak District & Derbyshire Managing Director, Jo Dilley, said: “We look forward to working with the Mayor and the wider industry to get the best results for the sector. It is essential that any visitor levy is retained locally and aligned with our growth strategy.

“With businesses continuing to face significant increases in operating costs, any new measure must be introduced carefully to ensure it supports our visitor economy.

“We therefore welcome a full and meaningful consultation with businesses to help shape how a levy can be implemented effectively. We remain committed to working with the Mayor to ensure that any approach strengthens her ambition for a thriving, competitive East Midlands tourism sector.”

Marketing Nottingham & Nottinghamshire Chief Executive, Megan Powell Vreeswijk, has said they welcome the opportunity for the East Midlands Mayor to establish a visitor levy across the region.

Ms Powell Vreeswijk added: “This will enable us to deliver on areas of promotion, improvement and visitor attraction to boost our economy, create jobs and elevate Nottinghamshire as the wonderful place it is to visit and meet.”