Stuart Anderson MP has said that the introduction of a Overnight Visitor Levy (OVL) in England would greatly harm South Shropshire’s tourism and hospitality sectors.
Together, these sectors support thousands of local jobs and generated £1 billion for the local economy in 2025 alone. A levy would also push the cost of a two-week staycation up by £100.
Stuart Anderson MP said:
“People from around the world come on holiday in South Shropshire. From our market towns to our beautiful countryside, South Shropshire offers so much to both tourists and residents, whether on day trips or on longer holidays. Last year alone, tourism in Shropshire generated £1 billion for the local economy. The industry also supports thousands of local jobs. An Overnight Visitor Levy would devastate our rural economy - including our tourism and hospitality sectors, which have already been repeatedly targeted by successive tax hikes under this Labour government. It would also significantly increase the cost of holidays for residents who are already struggling with the soaring cost of living. If Labour truly wanted to support families and boost the economy, they would be cutting taxes - not raising them. A new levy will push families to holiday abroad or stay home instead. That means fewer jobs and less money for business.”
Stuart Anderson MP has warned the Chancellor Rachel Reeves against imposing a new levy on overnight stays in England. The plans to grant elected mayors the power to impose overnight levies was confirmed in the recent King’s Speech.
While they would initially affect city regions, the consultation also considers whether areas that opt to become ‘Foundation Strategic Authorities’ should be included. However, analysis has shown that even a £5 per night tourist tax could cost the UK £9 billion and wipe out 30 million domestic overnight stays.
Stuart has urged the Chancellor to abandon her plans due to the impact on tourism and hospitality. In doing so, he has joined hundreds of bosses of leading UK accommodation firms who have called on the government to scrap the tax. New polling reveals one in five Brits would choose not to book a holiday in England if it were introduced. Meanwhile, industry estimates it could cost 33,000 jobs and reduce GDP by £2.24 billion across England.
In March 2026, it was revealed that Shropshire’s visitor economy generated £1 billion for the local economy in 2025 and supports 9,454 jobs across the county. The latest figures also reveal that more than ten million people visited Shropshire in 2025, with almost half of those people staying overnight.
Stuart has said that the introduction of an Overnight Visitor Levy (OVL) would put this progress at risk, greatly harming Shropshire’s tourism industry. Trade body UKHospitality trade body haswarned that it could see holidaymakers taxed an extra £1.6 billion and cost up to 33,000 jobs by 2030. Tourist spending could drop by as much as £1.8 billion, and the number of overnight stays fall by 12 million, according to research from Oxford Economics.
Stuart’s objections to the new levy also follows fresh research from the Tourism Alliance, which represents businesses across the visitor economy. The Alliance has found that the sector contributes £147 billion to UK GDP, supports 2.4 million jobs, and generate £52 billion in annual tax revenues. The Alliance has also found that the UK already has the second-highest accommodation tax in Europe, meaning a levy would widen that gap further at a time when the UK ranks 3rd least price-competitive of 44 European tourism destinations.
Meanwhile, VisitBritain’s Economic Impact Study shows that tourism’s direct and indirect (supply chain) GDP impact in the UK reached £147 billion in 2024, accounting for 5% of the national economy and supporting 2.4 million hobs. Tourism related employment has also increased by 8% since 2022. The visitor economy is expected to contribute £161 to the national economic annually by 2030. The government has said it is “fully committed to making that growth happen.” However, Stuart has warned that the 2024 Autumn Budget hiked taxes on hospitality businesses by £3.4 billion. In subsequent months, 89,000 jobs in hospitality were lost. Stuart has said that a new tax on overnight accommodation would further damage these sectors and jeopardise the government’s growth plans. Overnight stays have fallen sharply, with visitor spending down by £1.8 billion in the past year alone.
In contrast, savings identified by the Conservatives would enable it to provide 100% business rates relief for most retail, hospitality and leisure businesses including tourism organisations. Stuart has also opposed the government’s plans to effectively ban holiday lets in England from 2028 unless owners secure an EPC rating of C, or spend £15,000 in attempting to reach it.
