North East leaders disagree on 'tourist tax' plan

Some believe the levy would aid tourism while others feel it would be a burden

Leaders in the north-east of England disagree over whether the government's proposed 'tourist tax' would benefit or damage tourism in the region.

Plans were announced ahead of Wednesday's Budget to give regional mayors the power to charge tourists a tax for staying overnight in their towns and cities.

North East Labour Mayor Kim McGuinness said a levy would "transform the welcome" to visitors. However, Northumberland County Council Conservative leader Glen Sanderson said the plans could put "additional pressure" on tourism.

Tees Valley Conservative Mayor Ben Houchen announced he would not implement the policy, saying: "Thanks, but no thanks."

The plan was announced by Local Government Secretary Steve Reed who said it would allow mayors to put on events, revamp areas, or improve local transport to "unlock growth through investment".

Scotland and Wales plan to introduce a tourist tax next year, of 5% or £1.30 per night respectively.

From B&Bs to hotels

Regional tourism bosses are aiming to double the number of people visiting the North East over the next decade, the Local Democracy Reporting Service said.

The government said the visitor levy would apply to tourists staying at accommodation providers including hotels, holiday lets, bed and breakfasts, and guesthouses.

A consultation on the proposals will run for 12 weeks, though details of exactly what charges will be applied in each region have not been confirmed.

McGuinness had previously advocated for a £1-per-night charge on hotel stays and included it in her election manifesto.

She said this week even a small charge would "transform the welcome we can give to people coming to north-east England from all over the globe".

But Sanderson said he saw the levy as "yet another burden" on a sector the area is "trying to grow".

He said he would urge McGuinness to reconsider but, if the levy was introduced, he would seek a commitment to invest any income directly back into the places it was raised.

Houchen said: "I won't be using this power.

"There will be no tourist tax in Teesside, Darlington and Hartlepool for as long as I'm mayor.

"Thanks, but no thanks."

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