UK holiday tax proposal fuels business closure fears in Yorkshire and North East

A poll of more than 10,000 adults across Great Britain shows that nearly half of respondents in Yorkshire (47%) and the North East (43%) fear the proposed Overnight Visitor Levy could force hospitality businesses to close. The levy would allow local mayors to add a charge to overnight stays in hotels and other accommodation, following a similar 5% charge introduced in Edinburgh.

Respondents also expressed concern about youth employment, with 38% in the North East and 35% in Yorkshire worried about fewer job opportunities. About one‑third of people in each region said they would think twice about visiting family, friends, museums or galleries if overnight stays became pricier. The hospitality sector supports 271,000 jobs and contributes £6.5 bn to Yorkshire’s economy, and 118,000 jobs with £2.1 bn in the North East.

Allen Simpson, chief executive of UKHospitality, urged the government to act, while the findings follow Alan Milburn’s interim report on youth unemployment, which highlighted a growing “generational faultline” of young people outside education, employment or training.