North East Mayor Kim McGuinness Defends Tourism Tax Plans Amid Regional Backlash
North East Mayor Kim McGuinness has confirmed plans to introduce a regional tourism levy on overnight accommodation to fund major events and create jobs, despite facing fierce opposition from local authorities, business owners, and neighboring mayors. In September, the UK government confirmed plans to allow local leaders to introduce the targeted visitor fee for tourists staying in hotels, bed and breakfasts, and other regional lodging types.
Diverging Views Among Regional Mayors and Local Councils
The proposed levy has exposed deep political divides across northern England. While North East Mayor Kim McGuinness stated that the fee would fund major events
and guaranteed that this will create jobs and bring in thousands of tourists,
Tees Valley Mayor Ben Houchen publicly announced that he will not introduce the tax in his region, according to AOL reporting.
Opposition extends beyond neighboring leadership. In September, four Reform UK-led councils in north-east England—Durham, Gateshead, South Tyneside, and Sunderland—wrote to McGuinness opposing the policy. The councils warned that making the North East more expensive at the checkout risks driving visitors, spending and jobs to neighbouring regions,
bbc.co.uk reported. The friction escalated earlier in the month when Durham County Council deputy leader Darren Grimes labeled McGuinness a megalomaniac
following a regional meeting with Prime Minister Andy Burnham.
Hospitality and Music Venue Owners Express Concern Over Costs
Local business owners argue that adding a tax on overnight stays will penalize struggling rural establishments and deter visitors. Kate Hodgkinson, owner of Cobalt Studios in the Ouseburn area of Newcastle, criticized the policy as counterintuitive,
noting that Newcastle already experiences quiet summer periods without university students. Instead of a tourism tax, Hodgkinson suggested raising taxes on empty buildings to fund local tourism initiatives.
In Rothbury, Debbie Noble, who runs The Turks Head Inn, rejected comparisons to Scottish tourist hotspots. Edinburgh is not Rothbury,
Noble said, explaining that the village frequently lacks weekday visitors and that higher costs would drive travelers elsewhere. Andrew Golding, operator of the Point venue in Sunderland, added that tourists need stronger incentives to visit before facing additional charges, noting that major events do not automatically translate to spending in grassroots pubs and music venues.
Existing Tourism Levies Across the United Kingdom
Variations of the visitor levy already operate in other parts of the UK. In Scotland, local authorities possess the power to charge overnight visitor levies. Edinburgh implements a 5% rate on hotels, bed and breakfasts, and self-catering facilities, capped at a five-night stay.
Meanwhile, Liverpool utilizes a business-led scheme where visitors to participating hotels pay a £2-per-room overnight charge. By March, that scheme had generated approximately £10 million, funding high-profile events such as the Labour Party Conference and the World Chess Championships.