MPs have disagreed over whether short let owners should have to collect a visitor levy under plans being drawn up for English councils.

During a Parliamentary debate, Rachel Blake was one of many Labour MPs who said short-term lets should pay the levy, “which should be implemented in a way that makes sure we can gather data on who is letting out their home on a short-term basis”.

Housing Minister Alison McGovern (pictured) told MPs that the consultation - which finished last month - proposed that the levy would apply to commercially let short-term accommodation but added: “We will say more when we bring forward proposals.”

Problem

However, Conservative MP Damian Hinds said it would not solve the problem of whether short lets were pushing up rents. He also doubted that the government would stick to its promise of ringfencing money raised and pointed to England’s VAT rate of 20% compared to European countries with visitor levies where VAT was typically 10%. Hinds added: “The levy is a bad idea from the point of view of the cost of living; it would add over £100 to a typical holiday for a family of four.”

Last November, the Chancellor revealed plans to roll out the tax across England - expected to be a few pounds per person per night - giving mayors of ‘strategic authorities’ more power and cash to invest in local economies, but also helping to increase visitor numbers.

Flaw

Lib Dem’s Tom Gordon said the proposal’s fundamental flaw was that it would be a tax on staying overnight, not tourists. “Day-trippers, who often add strain to local infrastructure pay nothing, but those who stay overnight, supporting local jobs and businesses, pay more.”

The Minister insisted that any money raised through a visitor levy should be reinvested in those places where it is generated. “In the consultation, we asked about a percentage-based rate, which would scale with the cost of a stay, but we also recognise the potential benefits of alternative approaches, such as a flat-rate model.”

A visitor levy has already been introduced in Edinburgh where a 5% charge on overnight accommodation is to kick off from July.

‍