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Today Monday, September 14, 2026
UKHospitality Urges Mayors to Link Tourist Tax to 10% VAT
financehotelowner.co.uk··1 min·For: Owner, GM, Revenue, Investor

UKHospitality Urges Mayors to Link Tourist Tax to 10% VAT

UKHospitality is pressing metro mayors to back a reduced 10% hospitality VAT rate and a statutory 5% levy cap before enacting any local visitor taxes. The trade association warns that combining existing 20% VAT with local taxes puts UK destinations at a severe competitive disadvantage.

Key Takeaways

  1. 1UKHospitality demands a cut to 10% VAT as a condition for introducing local tourist taxes.
  2. 2The trade body seeks a legally binding statutory cap of 5% on any municipal visitor levies.
  3. 3Oxford Economics warns that an unchecked holiday tax could cost up to 33,000 sector jobs.

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Source: hotelowner.co.uk

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