Labour's B&B Tax Sucks

Conservatives have launched a campaign to save the great British holiday from John Prescott and Gordon Brown's latest money grabbing ruse - a new stealth tax on British holidays.

Labour are looking into a new levy on hostels and bed and breakfasts in England and Wales. This would be on top of the existing business rates and VAT on hotel bills and could potentially add a further 100 pounds to a typical British family holiday.

Freemantle's Conservative Councillors have been calling for the bed tax idea to be scrapped when it was brought to our attention in April by local B&B owners. I am delighted that the party nationally is now formally opposing this mad idea. In Freemantle we have lots of local B&Bs and it would be a disaster for the local economy if the Government introduced it.

The prospect of holiday accommodation costs increasing was dramatically raised when in response to a request from the Chancellor and Deputy Premier John Prescott, former Labour councillor Sir Michael Lyons drew up interim proposals for new local taxes, which would come on top of existing business rates and VAT charged on hotel bills.

Based on similar taxes in other countries, the new levy could potentially add 100 pounds a week to the cost of a family holiday or visit to Britain's tourist destinations. Less well-off families would be the hardest hit.

Mr Swire, the Conservative Shadow Secretary for Culture, Media & Sport, commented: "The brilliant summer weather has shown what a great place Britain is to spend a short break or a holiday. But the great British holiday is under threat from a 'bed & breakfast stealth tax' - Gordon Brown's latest money-making ploy. There's nothing wrong with choosing to travel abroad, but no-one will benefit from making British holidays a rip-off."And Mr Pickles, Shadow Minister for Local Government, declared: "Gordon Brown and John Prescott have already hiked up council tax bills. Now they want to hike the price of a British break. John Prescott travels the world on foreign jollies at taxpayers' expense, from Sydney casinos, to Maldives scuba-diving, to Wild West ranches. Obsessed with the trappings of power, he doesn't give two cents for the struggling British seaside resort."

The Government's current review into local government finance in England will report by the end of 2006. In his interim report in December, Sir Michael Lyons suggested that a hotel tax might be introduced, noting "the most frequent proposal was for a local tax on hotel and similar accommodation", and stating that "I am interested in exploring this issue further". Meanwhile Tourism Minister Shaun Woodward has refused to rule out the new tax, and has stated: "We have to balance the books."

To find out more and sign the e-petition against the tax click here.

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