Tories add voice to bed tax campaign

15 June 2006
Tories add voice to bed tax campaign

Political support for Caterer‘s Say No to Bed Tax campaign gained further momentum last week when the Conservative Party added its voice to the chorus of disapproval.

Speaking at a UKInbound Parliamentary reception last Tuesday (6 June), the Shadow Secretary for Culture, Media and Sport, Hugo Swire, announced that the Conservative Party would fight all taxes on tourism.

Swire told Caterer: "I am very concerned about the plans for a new bed tax. Tourists and visitors may seem an easy target, but they make an important contribution to our local economy."

He stressed that competition from the rest of Europe had already put Britain's tourism industry under strain.

"Given the proliferation of cheap flights to Europe and the price sensitivity of tourists, England's hotels could potentially lose a significant amount of business from a bed tax," he said. "We will be mounting a vigorous campaign to ensure [the tax] never sees the light of day."

A tax on overnight accommodation has been proposed as part of the Lyons Inquiry into local government funding.

The Conservative Party's stand follows last month's rejection of the tax by the Liberal Democrat Party.

The Liberal Democrat Shadow Minister for Culture, Media and Sport, Don Foster, told Caterer: "Last year, the annual tourism deficit reached £17.9b in the UK. A bed tax would only make this problem worse. If Britain is to take full advantage of the Olympic and Paralympic Games in 2012, then we should be doing more to attract tourists to this country, not using stealth taxes to put them off."

Britain's major tourism bodies have welcomed the support from the Conservatives and the Liberal Democrats. Steven Dowd, of UKInbound, said: "Both political parties have recognised that the industry is united against a further tax on tourists. It is the wrong thing to do at the wrong time."

Stuart Barrow, Government affairs officer for tourism authority VisitBritain, said he was encouraged by how widespread opposition to the bed tax had become.

"If Sir Michael Lyons does suggest a bed tax, it is hard to see who will be willing to vote for it in the House of Commons," he said. "Sir Michael must surely note the unity of the House, and the industry, in opposing this proposal."

More news, comment, letters on Caterer's Bed Tax campaign here >>

By Matthew Batham

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