The Deputy Prime Minister and the Chancellor have banged heads over a potential tourist tax to fund local authorities.
Angela Rayner is arguing that bringing in a tourist tax on hotel stay will fund local authorities, but Treasury officials fear this will be another nail in the coffin for the hospitality sector.
A government source said that the Chancellor is wanting “quick wins” by not going through constitutional changes.
Sadiq Khan the Mayor for London has said that tourists “don’t mind” paying a small tax as thousands do every year in European cities.
Khan said, “We could spend more money improving the public realm, which would encourage more tourists to come but also improve the quality of life for residents in London.
Shadow Chancellor Mel Stride told The Telegraph, “Labour can’t help themselves, it’s always tax, tax, tax.
Whether it’s Angela Rayner or Rachel Reeves, the instinct is always the same. More taxes.
“First, a £25 billion jobs tax, now threats of a tourist tax that would hit hospitality hard.
A spokesperson for Rayner told the MailOnline there is “currently no plans to introduce a tourism tax in England.
