UK politics: Visitor levy powers should be in place by March 2028 in England, ministers say – as it happened | Politics
Ministers say visitor levy powers in England should be in place by March 2028, as ‘first step’ towards fiscal devolution
The Ministry of Housing, Communities and Local Government has now published its plans for a visitor levy, or tourism tax, in England. The plans are explained in a formal response to the consultation process launched at the end of last year.
Today’s document says mayors should be able to set out plans for how they will use the money from the levy by March 2028.
In their foreword to the document, Jim McMahon, the local government minister, and James Murray, the Treasury minister, say the overnight visitor levy (OVL) is just the first step in the government’s fiscal devolution programme. They say:
This government is determined to … put power, responsibility and accountability back in the hands of local leaders across the whole of the UK. Within England, the overnight visitor levy is our first step towards implementing the blueprint we set out in the cabinet statement, to shift power out of Westminster. Along with our plans to devolve a portion of income tax and enable mayors to retain some of the business rates generated in their areas, the levy represents our commitment to creating an accountable state, responsible to local people.
And this is what the document says about the case for the OVL.
OECD research has found that enhanced fiscal decentralisation is associated with higher economic growth and regional convergence – suggesting that doubling the share of tax or spending controlled by subnational governments is associated with an increase in national GDP per capita by 3% on average. Yet England remains one of the most centralised countries in the developed world, with only a small proportion of taxes raised and retained locally. According to the latest OECD data, just 6% of national taxes are collected at the sub-national level in the UK – far below the EU average and the lowest in the G7. In contrast, countries such as France, Japan, and the USA have much higher shares of local tax collection, enabling greater local investment and economic dynamism.
Key events
Afternoon summary
It’s disappointing that the overnight visitor levy [OVL] proposal is moving ahead, given the potential negative impact on staycationers and the complexity and administrative burden it will add to hospitality groups – all for relatively little revenue.
The lack of a cap on rates is a real issue. Holidaymakers face varied and potentially high rates now, and the uncertainty of rate creep later is a real risk that has already materialised in other countries like France and Spain.
The County Councils Network welcomed the plans. But it said it was worried that some areas could miss out because they won’t have a strategic authority (one of the mayor-led authorities that will have the power to impose the levy). Lucy Nethsingha, vice chair of the CCN said:
We are pleased government has listened to our calls to make these powers available for the county areas where a mayor is unsuitable. But there remains dozens of counties without any sort of devolution agreement – locking them out of any fiscal devolution powers – so we urge the government to ‘complete the devolution map’, where there is local consent, by the end of 2028.
For a full list of all the stories covered on the blog today, do scroll through the list of key event headlines near the top of the blog.
Tories claim ’emerging recommendations’ from Timms review into Pip show it’s ‘wasted opportunity’
Some disabled people could receive “in kind” support rather than just cash payments under a radical overhaul of the personal independence payment (Pip) proposed by official government advisers, Patrick Butler reports in a story published this morning.
Patrick’s story relates to a document published today by Stephen Timms, the social security and disability minister. Timms is carrying out a review of the personal independence payment (Pip), one of the major disability benefits. It was launched last year as the government had to abandon major plans to make it harder for people to claim Pip, and, unusually, the review is being “co-produced” – written by ministers working with leading figures from the disability sector.
In July the Timms review published an interim report, explaining problems with the system. A final report, with recommendations, is due later this year, but today Timms has published a document with “emerging recommendations”.
One of the recommendations, as covered in Patrick’s story, is that some Pip claimants, instead of getting money, could receive “tailored support”, such as “designated support teams to provide continuity”.
The Timms review was set up on the basis that it was expected to make the system better, not cheaper, and the Tories have expressed alarm about the emerging recommendations.
In a statement, Helen Whately, the shadow work and pensions secretary, said:
Welfare should be a safety net for disabled people. Instead, the system is being abused. But their ‘Timms review’ will do nothing to tackle that abuse or make savings.
This review is a wasted opportunity. There’s no plan to move from cash handouts to support. No action on Motability abuse. No end to benefits for mild anxiety or ADHD. Nothing on why PIP claims for mental health conditions – especially among young people – have surged.
Labour’s answer is to make PIP easier to claim, offer more online assessments, hire more people to wave claims through, and water down checks further. It’s extraordinarily out of touch.
The Conservatives will cut the welfare bill, bring face-to-face assessments back, stop giving cash for anxiety and ADHD – and build a new system to support more disabled people into work.
Pharmacists allowed to treat people for more illnesses under NHS scheme
Pharmacists in England will be able to treat people with migraines, acne, more types of ear infection and other conditions as the NHS “pharmacy first” scheme is expanded, the Press Association reports. PA says:
The scheme allows people to get care for certain common illnesses from qualified pharmacists without needing to see a GP first.
From this autumn as part of a phased rollout, people will be able to get help and treatment for acne, migraines, scabies, certain ear infections and allergic rhinitis from those pharmacies that take part.
At the moment, pharmacies can treat seven conditions under pharmacy first – including impetigo, infected insect bites, shingles, sinusitis, one type of ear infection, sort throat and urinary tract infections.
Once fully rolled out, the NHS expects between two and three million consultations for the new list of five conditions could be held in pharmacies.
NHS England has further details here.
ABTA, the trade body representing tour companies and travel agents, has said the visitor levy announced by the government for England will damage the travel industry.
In a statement, Luke Petherbride, its public affairs director, said:
ABTA believes the introduction of overnight visitor levies across England will further damage the competitiveness of our tourism sector. As such, we are disappointed the government has chosen to proceed with this policy.
The decision to pursue a percentage-based model, which has already been recognised to be problematic in Scotland, is especially concerning and should be reviewed. It is critical that mayors now engage with the sector before they take decisions on the local level.
Earlier I mentioned Tony Blair converting to Catholicism after he left No 10. (See 1.08pm.) Intriguingly, it turns out that another figure from the Blair era may end up converting. Alastair Campbell, Blair’s press secretary, once famously told a journalist interviewing Blair “We don’t do God”, which was taken as Campbell being anti-religion, not just anti his boss talking about religion to journalists. But in fact Campbell describes himself as a “pro-faith atheist” and, in an interview with James Macintyre for the Church Times, Campbell revealed that he attended private Bible study classes at Lambeth Palace when Justin Welby was archbishop. Campbell said he was “very interested” in faith and revealed that there have been moments where he has felt close to experiencing some sort of spiritual revelation. Asked if he might become a regular churchgoer, he replied: “I honestly don’t know.”
Friends of the Lake District, a charity that works to protect the landscape in one of England’s top tourist destinations, has strongly backed the government’s decision to allow mayors to levy a visitor levy. It says in the past polling has shown that 68% of residents in the area, and 64% of past or potential future visitors, are in favour.
Jeremy Smith, head of campaigns and engagement at the charity, said:
Levels of tourism to the Lake District are causing significant harm to the landscape and to the lived experience of local communities – and of visitors themselves. It is right that it falls on visitors to contribute towards the upkeep of the places they visit. This would help keep the Lake District special for everyone.
Cumbria does not yet have a mayor, but a combined authority is being set up and there will be an election for a mayor of Cumbria next year.
Council leaders in south-west England back plan for tourism tax
Steven Morris
Steven Morris is a Guardian reporter covering the west of England.
Some of the most high-profile political leaders in the west of England were largely positive about the idea of a tourist tax.
Helen Godwin, the Labour mayor of the West of England, said:
We are used to paying a visitor levy ourselves when we go on holiday to other countries, and now is the time to look at making sure we can invest more in what matters through a small charge on overnight stays here – with common-sense exemptions where we need them.
Godwin said funds raised through a tourist tax could be spent on improving services such as late night public transport or sprucing up public spaces in Bristol and Bath.
Things like this become possible sooner if we raise new funding through an overnight visitor levy. A few quid here and there can add up to some big change.
In a joint statement, council leaders in Bristol (which is Green-led), Bath and North East Somerset and South Gloucestershire (both Lib Dem-led), said:
Our region needs and deserves more investment to become even better and the ability to raise revenue through a small charge on overnight stays is something that we’ve long campaigned for.
We are committed to working closely with businesses across the tourism and hospitality sector to ensure that any future visitor levy is designed in a way that actively supports the industry, helps destinations thrive and delivers benefits for local communities.
Cllr Mike Bell, the Lib Dem leader of North Somerset council, sounded less certain, saying it was right that a tourism tax was explored. “Critically, funds from visitors to North Somerset should be invested in North Somerset,” he said.
The latest edition of the Guardian’s Politics Weekly UK podcast is out. It features Kiran Stacey and Peter Walker talking about Labour’s new approach to Israel.
Ministers say visitor levy powers in England should be in place by March 2028, as ‘first step’ towards fiscal devolution
The Ministry of Housing, Communities and Local Government has now published its plans for a visitor levy, or tourism tax, in England. The plans are explained in a formal response to the consultation process launched at the end of last year.
Today’s document says mayors should be able to set out plans for how they will use the money from the levy by March 2028.
In their foreword to the document, Jim McMahon, the local government minister, and James Murray, the Treasury minister, say the overnight visitor levy (OVL) is just the first step in the government’s fiscal devolution programme. They say:
This government is determined to … put power, responsibility and accountability back in the hands of local leaders across the whole of the UK. Within England, the overnight visitor levy is our first step towards implementing the blueprint we set out in the cabinet statement, to shift power out of Westminster. Along with our plans to devolve a portion of income tax and enable mayors to retain some of the business rates generated in their areas, the levy represents our commitment to creating an accountable state, responsible to local people.
And this is what the document says about the case for the OVL.
OECD research has found that enhanced fiscal decentralisation is associated with higher economic growth and regional convergence – suggesting that doubling the share of tax or spending controlled by subnational governments is associated with an increase in national GDP per capita by 3% on average. Yet England remains one of the most centralised countries in the developed world, with only a small proportion of taxes raised and retained locally. According to the latest OECD data, just 6% of national taxes are collected at the sub-national level in the UK – far below the EU average and the lowest in the G7. In contrast, countries such as France, Japan, and the USA have much higher shares of local tax collection, enabling greater local investment and economic dynamism.
Michael Sheen claims he was snubbed by first minister as he tells MPs of Welsh contamination scandal
Michael Sheen has said he was snubbed by the Welsh first minister after asking for a meeting to discuss claims of chemical contamination in Wales, the Press Association reports. PA says:
The actor appeared before the Welsh affairs committee this morning to talk to MPs about the findings of the BBC series, Buried with Michael Sheen, which aired last month.
The two-part programme explored the claims of whistleblower Douglas Gowan, who believed people in Wales had been poisoned by decades of exposure to toxic chemicals in the environment.
Sheen told MPs that he had contacted Rhun ap Iorwerth, the first minister of Wales, ahead of the documentary being broadcast, but was turned down for a meeting.
He said: “I got in touch with the first minister before the documentary went out, and I invited him and whoever he would like to bring forward to watch the documentary before it went out publicly, because I feel like this is not about trying to point blame at anyone.
“I thought it was a very good opportunity for the first minister, as a new first minister, you know, incoming, to be able to get on board with this, to look for solutions.
“I’ve always said that everything we’re doing with this is not about just shouting about it, it’s about looking for a practical way forward, a practical solution.
“So, I invited the first minister to have an opportunity to look at it, talk to us about it. Unfortunately, that offer was not taken up.”
The documentary explored Gowan’s claims that thousands of tonnes of toxic industrial chemicals known as polychlorinated biphenyls (PCBs) had been dumped in sites across Wales and north-west England.
As part of the documentary, Sheen, who was raised in Port Talbot, was among a group of volunteers who had their blood tested for PCBs.
Asked how it made him feel, he said: “I agreed to being tested because I thought, well, I’m not affected, I haven’t been living in these communities.
“But then once someone’s sitting there telling you you’ve got 82 different PCBs in your blood, and one of them is the most deadly when it comes to carcinogens, it’s shocking.
“To know that communities in the area where I come from were sort of chosen to have this stuff put near them because they couldn’t fight back, because it would get hidden, it would be buried – I take as a personal affront.”
A Welsh government spokesperson said: “Addressing contaminated land is an important issue for this government, and the first minister has thanked Michael Sheen for highlighting these concerns.
“We are working to arrange a suitable date for a meeting between the first minister and Michael Sheen as soon as possible to discuss the issues raised and how we intend to address them.”
“This includes strengthening the ‘polluter pays’ principle, while continuing to press for environmental justice by making the case directly to the UK Treasury for funding to support this work.”
UK ministers explore raising price of water for some users amid shortages
Ministers are exploring making water more expensive for some users, in the face of severe supply shortages, Pippa Neill reports.
Lindy Cameron appointed first female permanent secretary at Foreign Office
Lindy Cameron has been appointed the Foreign Office’s new permanent secretary, becoming the first woman to hold the role.
Cameron, currently the British high commissioner to India, has previously been the chief executive of the National Cyber Security Centre.
She replaces Sir Olly Robbins, who was sacked by former prime minister Keir Starmer over Lord Peter Mandelson’s security vetting.
Commenting on the appointment, Ed Miliband, the foreign secretary, said:
I am delighted that Lindy Cameron has been appointed as permanent under secretary of the FCDO [Foreign, Commonwealth and Development Office]. Lindy brings enormous experience across the fields of diplomacy, development and national security, and a reputation for dynamic leadership in postings across the world, most recently as High Commissioner in India.
Burnham says he will scrap ‘archaic’ laws preventing Catholic or Jewish PMs advising king on church appointments
Andy Burnham has said that he intends to scrap “archaic” laws that prevent a Catholic or Jewish PM from advising the king on church appointments.
In the past prime ministers used to take an active role in senior Church of England appointments, but now Downing Street just rubber-stamps decisions taken by the church leaders themselves.
But Burnham, who is Britain’s first Catholic PM, has nevertheless had to recuse himself from this process because of his faith.
In a written statement to MPs released today, he said:
Restrictions set out in the Roman Catholic Relief Act 1829 and the Jews Relief Act 1858 prevent persons professing the Roman Catholic and Jewish faiths only from advising the sovereign on appointments to the Church of England and Church of Scotland.
I have therefore transferred my constitutional responsibility to advise the sovereign on Church appointments to the lord chancellor [Alex Norris].
Burnham went on:
It is, however, unacceptable for there to be a legislative bar against people of any faith performing all the functions of my office.
The government will therefore introduce a bill at the earliest possible opportunity to correct this antiquated and archaic anomaly.
As the Press Association reports, the prime minister’s role in religious appointments is largely symbolic, with candidates interviewed and selected by a church committee, on which the king is represented by the ecclesiastical secretary to the Crown and lord chancellor.
According to official guidance from the Cabinet Office, approval from the prime minister and the king is only sought “once a candidate has been chosen and accepted the post”.
Stephen Evans, chief executive of the National Secular Society, welcomed the announcement but called for the government to go further. He said:
These anomalies exist only because government remains entangled with the Church of England. In a modern democracy, the state should have no role in appointing bishops. The long-term answer is a clear separation of Church and state.
Burnham has been described as Britain’s first lifelong Roman Catholic, but other PMs have had Catholic leanings. Tony Blair is married to a Catholic, attended Catholic services while he was PM and converted to Catholicism within months of leaving No 10. He said he would have done it earlier had it not been for his job as PM.
Unlike Blair, Boris Johnson showed no interest in faith while he was PM, and was widely assumed to be a non-church-going Anglican.
But he surprised many people by marrying in a Catholic cathedral – despite the fact that he had already twice been divorced. This was apparently allowed because he had been baptised as a Catholic as a baby, before switching to Anglicanism as a schoolboy.
No 10 says visitor levy in England will mean communities keep ‘more of the benefits of tourism’
Downing Street has said that its plans for an overnight visitor levy – or tourism tax, as it is being called – will ensure that communities keep more of the benefits from tourism.
At the No 10 lobby briefing, the PM’s spokesperson said:
This afternoon, mayors will meet at No 10 North to discuss the government’s devolution agenda.
As part of that, we are confirming plans to give local leaders the power to introduce an overnight visitor levy.
The fundamental principle behind this is that we trust local leaders to make decisions for their areas. That’s why we’re shifting power out of Whitehall and giving communities more control.
More than 42 million international visitors came to the UK last year, spending more than £32bn.
So this levy is about ensuring more of the benefits of that tourism stay in local communities, with leaders able to reinvest funding in priorities such as transport to high streets and public spaces.
The spokesperson also gave some further details of how the levy will work.
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She confirmed that the levy would be charged as a percentage of accommodation cost, and that it would not be a flat fee. That would mean “cheaper accommodation automatically pays less”, she said. This is in line with the recommendation from the Centre for Cities in this report which said England should follow Scotland, which has a percentage-rate levy, and not Wales, which has a flat fee levy.
The spokesperson was unable to say if areas without mayors would be able to introduce a visitor levy, or if mayors would be able to impose the levy in some bits of their region but not others.
Downing Street has not said at what rate it expects the levy to be applied. But one model is the rate that applies in Edinburgh, where the rate is 5%, but capped so that it can only apply for five nights.
