Business leaders have urged Chancellor John Healey to reconsider plans to introduce a new tax on holidaymakers in England, amid growing concerns over its potential impact on family travel and the wider tourism sector. The proposed levy would add an estimated £100 to the cost of a two-week holiday, with the revenue intended to support local attractions and services.

Edinburgh recently became the first city in the United Kingdom to implement such a holiday tax, setting a precedent that has sparked debate across the country. Proponents argue that the additional funds could enhance tourist infrastructure and help sustain cultural and recreational sites that benefit from visitor spending.

However, the initiative has faced criticism from prominent figures in the business community. Robert Jenrick, the shadow chancellor for the opposition Reform party, described the scheme as a financial burden on families. He attributed the policy’s development to Andy Burnham, suggesting it would discourage travel and negatively affect households planning vacations.

Supporters of the tax maintain that it represents a necessary step towards ensuring that tourism contributes more directly to maintaining the destinations it benefits, especially as public funding for local amenities has tightened. Critics, meanwhile, caution that the extra cost could lead to a decline in domestic tourism, potentially harming businesses reliant on seasonal visitors.

As discussions continue, the government has yet to announce a formal timetable for the roll-out of the holiday tax in England, while stakeholders from across the travel and hospitality industries monitor the situation closely. The debate underscores the broader challenge of balancing revenue generation with maintaining an accessible and vibrant tourism sector.