A resolution has been brought forward by Conservatives opposing the prospect of a tourist tax in the city. It comes after the Government set out plans to allow regional mayors to impose the levy - against the wishes of a local authority if necessary.
Although a consultation is still underway, the Government favours a percentage-based charge on overnight stays, which would be set at a regional level. The charge would be levied on overnight stays in a range of different accommodation types. These include hotels, guesthouses and caravans – although gypsies and travellers would be exempt.
Regional mayors would be free to spend revenue on things like bus franchising and housing, they could also use the levy to access borrowing. It’s not clear how much of the revenue would stay within the area where it was raised, so taxes raised in Coventry could be spent in Birmingham.
In December, representatives of the West Midlands Combined Authority attended a scrutiny meeting in Coventry and failed to rule out a tourism levy. This has added to fears the Birmingham based Mayor will impose it on the city as soon as possible.
The proposal comes just weeks after a £26bn tax hike was unveiled at the budget, and Conservatives have branded it an unnecessary, and harmful burden on the city’s visitor economy.
They believe another tax hike could deter visitors, harming the local visitor economy. They’re also sceptical about how much additional funding Coventry could receive.
Another concern for the councillors is the impact a tourist tax may have on local hotels, like Coombe Abbey, and other key attractions. It was recently revealed The Wave was falling short of its visitor targets by around one million people every year, a tourism levy could deter even more visitors.
The resolution brought by the Leader of Coventry Conservatives Cllr Gary Ridley, and seconded by Cllr Mattie Heaven calls on the Council to make ‘strong representations’ to the Government as part of their consultation exercise which ends on 18th February.
Commenting on the motion Cllr Ridley said: "People have already been hit hard by this tax raising government during a cost-of-living crisis. Yet all they have to show for it is higher welfare spending and cuts to vital services. Over time this will just become another source of revenue for a distant, and detached, mayor to spend in Birmingham. Why would anyone believe this will be spent on improving Coventry?”
Cllr Heaven added: “This tourist tax is a stealth levy that will damage local jobs, raise prices, and drive visitors away, and our city should say NO. Our local shops, restaurants, and hotels are already struggling to cope with Labour’s disastrous jobs tax, so they’ll have to pass this onto customers. Adding an extra charge could make Coventry less competitive, leading to fewer visitors and reduced spending. We’ve already got a tourist tax, in the form of the Go CV card, and this is just another tax hike from the highest taxing government this country has ever seen.”
Elsewhere in the country levies have already been introduced. In 2024 Scottish local authorities were given the power to implement a charge on overnight accommodation. Edinburgh Council set a rate of 5% on overnight accommodation up to a maximum of five nights.
Meanwhile, Aberdeen Council will charge 7% from 2027. The levy in its current form is opposed by 78 organisations in Scotland, including Historic Houses Scotland and the Association of Scottish Visitor Attractions.
In England, some cities, like Manchester and Liverpool, have introduced charges through ‘Accommodation Business Improvement Districts’. However, a similar scheme in Bournemouth was shelved after a group of hoteliers objected claiming it could penalise the 75 hotels in the seaside resort area.
