Incoming councils eye tourism tax to boost funds

Surrey's two new unitary authorities are considering a tourism tax to help buoy their finances.

This "overnight visitor levy", which regional mayors will be allowed to charge under government plans, could come to the county as part of a major overhaul of its councils.

East and West Surrey councils are set to take over power from Surrey County Council and the 11 district councils next April, after which they plan to pool resources on certain services.

A government spokesperson said the levy would "ensure local people and economies keep more of the rewards and invest in what matters most to their communities, including reinvesting back into tourism itself".

The move would allow regional mayors to impose a small tax on paid visitor accommodation in their areas, the aim of which is to see more investment in local infrastructure.

This would apply to hotels, bed and breakfasts and guesthouses, according to the Local Democracy Reporting Service.

A cabinet statement in July said the government would give "all strategic authorities the ability to introduce an overnight visitor levy, with local leaders able to set out plans for how revenues will be invested by March 2028".

A government spokesperson added that similar levies in other countries typically add only a small amount per night and have limited impact on visitor numbers and jobs.

MeanwhiIe, a 2019 study by the Institute for Fiscal Studies estimated that a £1 tourist tax could raise £420 million per year across England.

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