Torbay MP warns new tourism tax could be 'devastating' for local hospitality

Torbay MP Steve Darling has warned that a newly announced tourism tax could prove "devastating" for the town's hospitality industry, saying the government is undermining its own regional investment promises.

Mr Darling's comments came in response to a statement released on Friday, September 11, from Chancellor John Healey, who pointed to the UK recording the fastest growth in the G7 during the first half of the year. While Mr Darling welcomed some of the government's local investment, he raised sharp concerns about the wider direction of travel for the South West.

"I welcome genuine investment in our communities, such as the two £20 million pots of Pride in Place funding for both Torquay and Kings Ash," he said. "Torbay is home to many amazing businesses and innovators, from our tourism and hospitality industry to our high-tech cluster.

"However, I do worry about this Government giving with one hand and taking away with the other, potentially harming our local economy."

In his concerns, Mr Darling pointed to the government's new Manchester-based operation, known as Number 10 North, as a symbol of where the government's regional focus now lies. The office, launched by Prime Minister Andy Burnham in July, forms part of a wider push to shift decision-making on devolution and local growth out of Westminster and into the regions, though critics have questioned whether it risks concentrating attention on the North of England at the expense of other regions.

"The new Number 10 North takes the seat of power at least two more hours further away from Torbay, and the Chancellor this week announced lots of new investment for the North of England, leaving the South West behind," Mr Darling said.

Another point Mr Darling told the Torbay Weekly was his strongest criticism of a newly announced tourism tax, which he warned could seriously damage Torbay's hospitality sector.

"The unlimited Tourism Tax also announced this week could be devastating for our local hospitality industry," he said. "Holidays should be relaxing, not taxing, and I will continue to fight for what is best for Torbay."

Tourism taxes, sometimes known as visitor levies, allow local or regional authorities to charge overnight visitors a fee, usually a percentage of accommodation costs, which several UK cities have already introduced or are actively considering. Hospitality industry groups have previously warned that such levies risk adding further costs to a sector already dealing with rising National Insurance contributions and business rates.

Responding to the latest GDP figures, Mr Healey struck an optimistic tone about the wider economic picture. "Britain's economy is demonstrating a welcome resilience, despite serious global uncertainty," he said. "Our growth, although still fragile, was the fastest in the G7 in the first half of the year. But the conflict in the Middle East does have impacts here at home, from the cost of the weekly family shop to the cost of government borrowing."

He pointed to the government's approach to regional growth as central to its economic strategy. "We are shifting power to local communities to generate growth in more places and backing business to succeed with more investment, innovation and jobs," he said. "This is the route to raising living standards and delivering good growth in every postcode."