The Reform Party has pledged to repeal the proposed holiday tax if it secures victory in the forthcoming general election, positioning the levy as a threat to family vacations and the hospitality sector. The tax, which would grant local mayors authority to impose fees on overnight stays, has been criticized for potentially driving up costs for tourists and undermining economic activity in the tourism industry.

Under the current plan, which is supported by Labour leadership including Prime Minister Andy Burnham, mayors would have the power to levy an uncapped charge on visitors staying overnight, a proposal that has sparked concern among industry representatives and opposition politicians. Reform’s economic spokesman, Robert Jenrick, described the measure as disconnected from the financial realities faced by working families. He argued that the tax would be a “disaster” for those already burdened by rising energy bills, food prices, and general taxation.

Industry groups have echoed these concerns, with UKHospitality warning that the holiday tax could result in significant job losses and economic damage. According to their analysis, up to 33,000 jobs in the hospitality sector could be at risk, and the wider economy might suffer a loss of as much as £2 billion. Allen Simpson, chief executive of UKHospitality, urged the government to focus on policies that promote tourism and reduce the tax burden on hospitality businesses rather than add additional costs.

The proposed levy has already been introduced in Scotland and is expected to come into effect in Wales shortly. It is estimated that the tax could increase the cost of a typical family staycation by around £70 per week, or as much as £150 for a two-week holiday, raising concerns about affordability for many households.

Tory leader Kemi Badenoch has also voiced support for scrapping the tax, aligning with Reform’s stance. Nigel Farage, a prominent figure within the Reform Party, has expressed fears that the charge will further strain the struggling hospitality industry.

Reform argues that instead of raising new taxes on tourism, government efforts should prioritize cutting what they describe as wasteful spending on benefits, foreign aid, and environmental initiatives tied to Net Zero goals. They propose that such savings could allow for tax reductions to ease financial pressures on British workers and families.

The ongoing debate over the holiday tax reflects broader tensions about how to balance local government funding, economic recovery, and the cost of living pressures facing many citizens in the United Kingdom.