County Council votes in favour of urging East Mids Mayor to scrap ‘tourism tax’

Pictured: Derbyshire County Cllr Alex Dale, Courtesy Of LDR Jon Cooper

By Jon Cooper – Local Democracy Reporting Service

Derbyshire County Council has voted by a majority in favour of calling on the East Midlands Mayor to scrap a Government proposal for a ‘tourism tax’ on overnight visitors to the county and its Peak District National Park as part of national budget plans.

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

But Derbyshire County Council’s Conservative Group Leader, Cllr Alex Dale, won the backing of the controlling Reform UK county council at a meeting at County Hall, in Matlock, on February 11th, in his call for the local authority to lobby the East Midlands Mayor to scrap the plans after outlining how he feels it could damage tourism in Derbyshire and the Peak District.

Cllr Dale told the meeting: “We are in a very competitive market place in this country with tourism and we want to bring people to Derbyshire and I really strongly think we should not take steps that may make people think twice about coming to Derbyshire.

“We see higher taxes, increased national insurance, increases in the minimum wage and business rates on pubs which are really putting the tourism industry under pressure.”

Cllr Dale has argued the Peak District and the 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 told the meeting this tourism is important for overall economic growth and it should be supported and not drained.

Cllr Dale claims that even though some may argue it is only a small amount extra for visiting tourists to pay – potentially £1 or £2 extra per room, per night – it is the ‘thin end of the wedge’ and once it is in place it will never go away.

Reform UK Leader, Cllr Alan Graves, said: “We as Reform councillors have raised concerns about proposals to impose a tourism tax on the Peak District creating an unfair burden on businesses and families struggling with the cost of living.”

He added it risks discouraging visitors while doing little to address infrastructure challenges and he added that feedback has shown a ‘tourism tax’ will be another cost that people cannot afford, hitting those on the lowest incomes.

Cllr Graves added that asking people to pay more to visit will add to their tax burden and not protect the Peak District at a time when more should be done to support tourism and jobs by not pricing people out, or reducing numbers and harming the local economy.

Conservative Cllr Martyn Ford also pointed out that council tax is going up and costs for fuel, gas and water are going up and to impose a tourism levy would discourage visitors.

Fellow Conservative Cllr Nigel Gourlay, who represents Chapel and Hope Valley in the Peak District, said the levy would be a bad tax that would discourage the people who should be coming to the Peak District.

However, he did raise concerns about the number of day visitors who he described as a ‘scourge’ on residents because he claims they add little to the local economy while creating traffic and litter problems particularly between Castleton and Edale as opposed to the overnight tourists who do support the economy.

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 leaders on a footing with top tourist destinations around the world.

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 on 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.

County Council Labour Group Leader, Cllr Anne Clarke, argued that overnight visitors to the Peak District and Derbyshire would pay just £1 or £2 extra which could help improve things like parking and toilets as well as the visitor experience while encouraging future visitors.

A Peak District National Park Authority spokesperson has said it wants clarity on how a tourism levy might operate and how any revenue raised within the national park and wider Derbyshire would be allocated and reinvested.

The authority says the Peak District hosts more than 13 million visits each year which places substantial demands on paths, habitats, roads, and visitor facilities which have to be maintained and if there is to be a levy the money should go back into supporting the area.

It will 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.

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 she wants more people to visit the East Midlands, and the power to introduce the new visitor levy would provide more money to invest locally to support additional transport and visitor attractions and to address parking challenges.

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 an ambition to grow the visitor economy by an estimated £1billion.

Visit Peak District & Derbyshire Managing Director, Jo Dilley, said it is essential that any visitor levy is retained locally and aligned with its growth strategy and with businesses continuing to face significant increases in operating costs, any new measure must be introduced carefully to ensure it supports the visitor economy.

Derbyshire County Council voted by a majority to endorse the Derbyshire Conservatives previous correspondence to the East Midlands Mayor opposing the proposed ‘tourism tax’, and to call on the Mayor to scrap plans to introduce the levy in Derbyshire and to instead work with local authorities and the tourism sector to support sustainable growth without imposing additional burdens on visitors or businesses.

The Peak District and Derbyshire tourism board confirmed there are now 33,000 jobs directly and indirectly supported by tourists, bringing a £3.58 billion boost to the economy.

A consultation, ending on February 18th, was launched by the Government into the proposed tourism levy for businesses, communities and others to have their say by visiting this link for details.