Andy Burnham says Cornwall visitor levy could be a ‘game-changer’

Prime minister Andy Burnham has said an overnight visitor levy in Cornwall could be a “major game-changer” for the region.

His comments follow a visit to Colwyn Farm near Truro on Saturday, where he announced a £65m boost to help farmers respond to the driest July on record.

Burnham was open to giving Cornwall the power to introduce a levy on overnight visitors as part of a devolution agreement, having stated it could be “a major game-changer in Cornwall, if it’s pitched the right way”.

LBC also reported the prime minister has plans for a “stage two” of hospitality support, following the announcement of a 20% business rates cut for pubs in July.  

He said: “Hospitality brings something really unique to the high street, to our communities, and it deserves our support. There’s going to be a stage two to this, and we’re looking obviously towards the Budget later this year to see what more we can do.”

Cornwall Council had considered imposing a visitor levy on its guests in 2011.

Earlier this month, UKHospitality urged government to implement a ‘holiday bonus’ instead of a holiday tax amid fears the visitor levy, at a proposed rate of 5% of the accommodation fee, would cost 33,000 hospitality jobs, reduce national GDP by £2.2b and cost a family of four going on holiday an additional £100.

Allen Simpson, chief executive of UKHospitality, told The Caterer: "A holiday tax will hike the cost of a family holiday and cost hospitality 33,000 jobs. For areas like Cornwall, it will have a devastating impact on local communities that rely on tourism and play host to thousands of family staycations each year. 

"Successive governments have failed to acknowledge that the vast majority of Europe has a significantly lower VAT rate than in the UK. Holidaymakers in the UK already pay a significantly higher rate of tax than they do in Europe and a holiday tax will only widen the competitiveness gap. 

"The prime minister has made a strong start to address hospitality’s tax burden in his first month in office and we would urge him to continue to address the damage done to the sector over the past two years by stopping the holiday tax."

The Cabinet Office has been contacted for comment.

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