Labour faces backlash over new holiday tax that could kill off traditional seaside resorts

By SOPHIE CHURCH, POLITICAL REPORTER Published: 00:24, 15 May 2026 | Updated: 00:24, 15 May 2026 Labour is facing a backlash over its new tax on holidays – which it is feared could stop Britons from visiting our traditional seaside resorts. Holidaymakers, businesses and even Labour backbenchers were yesterday pushing back against the new levy, which will force Britons to pay more for staycations. The new Overnight Visitor Levy Bill, announced in Wednesday’s King’s Speech, will allow English regional mayors to demand tourists pay an extra charge on overnight stays.  The surcharge, levelled against accommodation costs, will go towards funding local infrastructure and tourism. But Labour’s levy comes despite its pledge to tackle the rising cost of living. Nearly two-thirds of people who ‘struggle to make ends meet’ disagree with the tax, according to polling from campaign group UKHospitality. And almost three-quarters of holidaymakers say it would stop them holidaying in England, see them cut back on trips, or reduce how much they spend while away. Early modelling suggests the charge could add more than £100 to the cost of a two-week break – with Britons ending up paying £1.6billion in tax increases should the legislation be passed, according to research from Oxford Economics. Labour is facing a backlash over its new tax on holidays – which it is feared could stop Britons from visiting our traditional seaside resorts Jon Hendry Pickup, chief executive officer of Butlin’s, said Labour’s tax will ‘hurt working families, who can afford it the least, the most’. And Labour backbenchers yesterday joined calls for a rethink on the levy.  Chris Webb, Labour MP for Blackpool South and chair of the Parliament’s Tourism and Hospitality all-party group, told the Daily Mail: ‘Businesses are worried that this will deter people from booking, or will deter people from actually coming.’ He added it is ‘crucial’ to make sure the surcharge is not ‘overburdening those that are paying for these hotels’. And Dan Aldridge, Labour MP for Weston-super-Mare, said the tax ‘has to be about what works’. ‘It wouldn’t work for Weston-super-Mare and I would oppose it if suggested here,’ he said. A spokesperson from the Ministry of Housing, Communities and Local Government said: ‘This is speculation because the final design of the visitor levy has not been decided.’ No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.