Four North Yorkshire MPs, including Skipton MP, Julian Smith have written to the Mayor of York and North Yorkshire.
The Conservative MPs — Kevin Hollinrake, Rishi Sunak, Julian Smith and Alec Shelbrooke — have written to David Skaith calling for the process towards introducing the levy to be paused.
They say this should remain the case until detailed impact assessments are carried out and further engagement takes place.
In their letter, the MPs state that tourism plays a significant role in North Yorkshire’s economy and identity, adding that the sector is largely made up of small, independent and family-run businesses.
They write:
“A tourism levy would amount to a tax on family holidays and on the family businesses that depend on them, at a time when both are already facing significant cost pressures.
"The proposal is simply wrong in principle and should not be taken forward.”
The MPs also highlight what they describe as uncertainty around how the levy would operate.
In the letter, they say:
“Businesses remain uncertain whether it would apply solely to overnight leisure stays, extend to business travel, or be expanded to capture day visitors through parking, food and drink or attractions.”
They add that some accommodation providers are concerned they could be responsible for collecting the levy and covering associated administrative costs.
The letter also raises questions about how levy income would be treated for tax purposes, including whether it could affect businesses operating below the VAT threshold.
Further concerns referenced in the letter relate to governance and the allocation of any funds raised.
The MPs say:
“Businesses want to know whether funds raised in their communities would be reinvested locally, or whether revenue would be absorbed into a central pot with limited transparency or influence from those generating it.”
The letter concludes:
“For these reasons, we do not support the introduction of a tourism levy in North Yorkshire.
"The current process should be paused, detailed impact assessments published and meaningful engagement undertaken with MPs and local tourism organisations before any further steps are taken.”
A spokesperson for Mayor David Skaith said he would respond to the letter in due course.
Earlier this month, the mayor told the Local Democracy Reporting Service that he had spent four weeks speaking to businesses across the county about the potential levy.
He described it as a “game-changing opportunity to bring multiple millions of pounds into York and North Yorkshire”, but emphasised that no decisions had yet been made.
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