North East Mayor Kim McGuinness is likely to introduce an overnight visitor levy to invest in the regional economy following the government’s go ahead for the levy after a consultation which opened last year.
Mayor McGuinness said:”I want the North East to be known across the world as a place people want to visit, stay and keep coming back to. This weekend’s Great North Run shows the power of events to bring millions into the local economy and people from all over the world.
“A visitor levy could help us bring major international events to our region, back local businesses, improve visitor attractions, build on the 90,000 jobs already in this sector and unlock opportunities that come from a thriving visitor economy.
“Most importantly, the money raised here would stay here, helping us invest in the future of our region rather than waiting for Whitehall to do it for us.”
The North East Mayoral Strategic Authority has not yet taken a decision on the size of any levy, which will be discussed with residents and local businesses, but the mayor has already written to the government asking them for a 5% cap.
Protecting budget holidays
Announcing approval for the idea, the government said it would mean more money could be invested in high streets, public transport, and events to boost tourism and drive good growth, and described it as the latest shift of power from Whitehall and back into communities.
The government said it would protect budget holidays by requiring the levy to be charged as a percentage of the cost of accommodation, rather than as a flat fee, shielding families from disproportionate costs for cheaper holidays.
This latest step in fiscal devolution would bring England in line with other countries where similar levies are in place, including in many cities in Germany, the United States, Italy, Netherlands, and Canada.
It would directly benefit England’s tourism hotspots by investing money back into their communities, which would support regional tourism, help manage the footfall of visitors, and improve areas for those living there.
This is the latest shift of power out of Westminster and back into communities where it belongs, said the government – including allowing mayors to keep a share of income tax, giving them a greater say over planning decisions and supporting the establishment of strategic authorities in every part of England.
Secretary of State for Housing, Communities and Local Government Angela Rayner, said:
“Our amazing towns and cities, and our picturesque rural and coastal communities welcome millions of visitors every year – local leaders should have the power to make the most of that popularity. This measure will give mayors the choice to raise and reinvest funding where it’s needed most. It’ll help support the local services, public spaces and attractions that both residents and visitors rely on, with decisions taken by people who know their area best.”
Tees Valley Mayor, Lord Ben Houchen, has said in the past that he would not introduce an overnight visitor levy.
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