Labour’s Proposed Tourist Tax Could Price Working-Class Families Out of Holidays, Warns Butlins’ CEO
Jon Hendry Pickup, the CEO of Butlins, has raised alarm over Labour’s proposed £2 per person per night surcharge on holiday stays, warning that it could make vacations unaffordable for many British families. The proposal, part of Labour’s plan to curb the growth of short-term rental services like Airbnb, has been labelled “disastrous” for both households and the hospitality industry.
The proposed tax would effectively double the cost for a family of four booking a budget break at Butlins, with Pickup explaining that a family which would previously pay £49 for a night would now face a bill of £57, putting the holiday out of reach for many.
Speaking out against the tax in an interview with The Telegraph, Pickup expressed his frustration with Labour’s plans, pointing to Chancellor Rachel Reeves’ earlier statements about making holidays accessible for everyone. “I remember that statement very well, but you see what’s happening here. It’s a holiday tax. It could be disastrous for Butlin’s and businesses like us,” Pickup remarked.
The tax, currently under consultation, aims to target the proliferation of Airbnb properties, but Pickup believes the policy is flawed and unfairly impacts domestic tourists. He accused the government of undermining its own cost-of-living pledges, especially by imposing additional charges on families who already struggle with rising living expenses.
Pickup also criticized the government for excluding holiday parks like Butlins from emergency support measures that were introduced for other hospitality sectors, such as pubs and music venues, during the ongoing cost-of-living crisis. He also pointed out the sharp rise in business rates and National Insurance contributions that have curtailed employment opportunities for young workers in the industry, further compounding the challenges for businesses like Butlins.
As the debate continues, the government has defended the tourist tax, stating it is designed to generate revenue from the tourism industry and ensure that tourists contribute to local economic growth. A government spokesperson emphasized that the measure would allow mayors to ensure the funds benefit their communities and drive growth, potentially putting more money in people’s pockets.
While the tourist tax remains under consultation, its potential impact on the UK’s hospitality sector and working-class families is already sparking heated debate.
