Torpedo

Rayner demands tourist tax in clash with Reeves

Angela Rayner is pushing for councils to be given new powers to tax tourists, despite opposition from Rachel Reeves.

The Deputy Prime Minister has argued that councils should be given the power to tax visitors’ hotel stays amid a scramble by cash-strapped local authorities to cash in on booming demand.

It comes as a record 43 million foreign visits to the UK are expected this year, on top of British families travelling within the country.


Rayner is unlikely to care whether the idea is useful or not, she is merely looking for an idea to call her own while aiming a tax torpedo at the sinking ship of a major political rival. 

Unedifying of course, but Rayner doesn't do edifying and the idea is politically smart as the tax is common enough elsewhere.

Treasury officials are opposed to a tourism tax amid fears it would be a fresh blow for hospitality businesses already hit by Labour’s tax raids in last year’s Budget, as well as snuffing out a post-Covid revival in visits.

The row aligns Ms Rayner with powerful regional mayors, including Sir Sadiq Khan and Andy Burnham. It marks her latest clash with the Chancellor after previous disagreements over how to plug a multi-billion-pound fiscal black hole.

Two solid reasons for Angela to fire the torpedo in weepy Rachel's direction. As for any economic consequences - they don't come into it.