Lib Dems Lead the Charge to Protect East Yorkshire’s £1 Billion Tourism Industry

​East Riding of Yorkshire Council has stepped up to protect the region’s thriving hospitality sector, unanimously backing a Liberal Democrat motion to oppose any introduction of a "tourist tax" or accommodation levy.

​The move comes as a direct challenge to proposals that would grant locally elected mayors the power to charge visitors for overnight stays. Liberal Democrat councillors have warned that such a levy would act as a "handbrake" on an industry that has just celebrated a historic milestone: contributing a staggering £1 billion to the local economy for the first time.

​A "Kick in the Teeth" for Local Business
​Liberal Democrat Cllr Mike Heslop-Mullens, a vocal advocate for the region's tourism industry, argued that the proposed levy is the latest in a series of "apocalyptic" financial pressures being piled onto small businesses.
​"I don’t want to inflict a 'fourth horseman of the apocalypse' on our local tourism industry," told the council. "This follows the removal of business rates relief, the hike in employers' National Insurance, and increased business rates for hospitality. To add a bed tax now is simply not right for this region." Cllr Mike Heslop-Mullens 

"We all want a strong, successful visitor economy. Tourism is vital to the East Riding’s market towns, coastal communities, independent businesses and hospitality sector. But imposing a tax on visitors who stay overnight would make us less competitive, not more sustainable." Cllr Denis Healy 


Unlike European destinations where VAT for hospitality is significantly lower, such as 7% in Germany or 10% in Spain, UK businesses are already struggling under a 20% VAT rate. Adding a local levy, he argued, would force businesses to either hike prices and lose customers or absorb the cost and risk closure.

"Accommodation levies might generate revenue in concentrated city centers like Manchester, but the geographical spread of East Riding and Hull makes this unworkable," "There is a real fear that tax collected here would be swallowed up by Hull or larger towns, at the grave expense of our coastal, rural, and small-town hospitality providers."Cllr Mike Heslop-Mullens 

​Protecting the Most Vulnerable
​A key concern raised by the Liberal Democrats is that an accommodation levy is a "blunt instrument" that fails to distinguish between holidaymakers and those staying for essential or heartbreaking reasons.

​"A tourism tax would not distinguish between leisure guests and those staying to visit sick relatives, those awaiting home adaptations for accessibility, or families displaced by flood or fire,"  "It would even hit those attending medical treatment at our local hospitals. We should be supporting these people, not taxing them."Cllr Heslop-Mullens

​Keeping East Yorkshire Competitive
​The Liberal Democrats emphasise thst East Yorkshire must remain a competitive and welcoming destination. While cities like Manchester or Venice use levies to manage "over-tourism," the East Riding relies on every visitor to sustain its rural and coastal communities.

​Councillor Dale Needham, general manager of the Cave Castle Hotel, seconded the motion, noting that households are already "struggling with the cost-of-living crisis." He warned that "taxing people to stay overnight in Yorkshire will lead to a decline in visitors, which will impact businesses and jobs."

​The Liberal Democrat Vision for Tourism:
​No New Taxes: Opposing the "bed tax" to keep the region affordable.

​Cutting Red Tape: Protecting small B&Bs from the administrative burden of collecting levies.

​Supporting Growth: Positioning the East Riding as a "Tax-Free Zone" for tourists compared to neighboring mayoral authorities.

​Fairness for All: Ensuring that those staying for business or emergency reasons aren't penalised.

​The motion passed with unanimous support across the chamber, sending a clear message to the Treasury and the Mayor’s office: East Yorkshire is open for business, not for extra taxes.

​"We need to make it perfectly clear"  "This tax adds extra costs for visitors and would damage hospitality businesses that are already struggling. We want to support growth, create jobs, and expand our tourist industry, not tax it into decline."Cllr Heslop-Mullens

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