Holiday Tax Bill will legislate for more expensive family holidays

The inclusion of a Holiday Tax Bill in the King’s Speech has confirmed a Government U-turn that will make UK staycations more expensive, despite commitments to the House of Commons that it would not introduce such a tax.

Allen Simpson, Chief Executive of UKHospitality, said: “The Government has confirmed it will legislate to make family holidays more expensive during a cost-of-living crisis.

“It’s a shocking U-turn after it told both the House of Commons and UKHospitality that it would not implement a holiday tax.

“The facts are simple. A holiday tax will increase the cost of a staycation for Brits, it will hit lower income families hardest, it will lose the Treasury money and it will cost 33,000 jobs.

“A holiday tax is wildly unpopular, as well as economically destructive. Twice as many people oppose it, than support it, and voters are 10 times more likely to punish an MP who supports a holiday tax, than they are back them.

“This tax, on top of the UK’s 20% rate of VAT, will make us an outlier in Europe. The tax on a holiday in the UK will become double many of our major rivals, who enjoy a much lower rate of VAT.

“It is nonsensical for the Government to go ahead with such an unpopular measure. There is still time for the Government to think again and stop the holiday tax.”