CBI responds to overnight stay levy proposal

Alice Jeffries, Tax Policy Manager at the Confederation of British Industry, said:

"It's disappointing that the Overnight Stay Levy proposal is moving ahead, given the potential negative impact on staycationers and the complexity and administrative burden it will add to hospitality groups - all for relatively little revenue.

“The lack of a cap on rates is a real issue. Holidaymakers face varied and potentially high rates now, and the uncertainty of rate creep later, is a real risk that has already materialised in other countries like France and Spain. 

“If implemented, local authorities must commit to a coordinated approach to OVL rates for the long term, set at the lowest possible level to keep holidays affordable.

"But, there are better ways to fund and design fiscal devolution and the CBI stands ready to support government to focus on those".