The Lyons Inquiry into local government funding, which reports tomorrow, will recommend a bed tax, according to reports this morning.
The BBC has obtained a leaked copy of the report, which it said proposes a tourist or bed tax as an extra source of local authority income, although it would be up to councils whether they adopt one or not.
The move will anger operators and industry bodies, which have voiced their opposition to the proposals.
Last June, Caterer delivered more than 4,000 signed petitions from readers to Sir Michael Lyons, the man heading up the inquiry.
By Daniel Thomas
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