September 22, 2026
Tax

Welsh council suspends holiday tax plans after backlash


The council noted that two thirds of the 7,000 responses it received to its tax consultation were against the proposals, with responses indicating that 80pc of businesses and tourists were against the levy, as well as half of residents.

It added that, after taking legal advice, it was postponing a final decision on the tax so officials could properly consider the responses to the consultation, meaning it is unlikely to introduce any levy before 2028.

This is because councils are required to give Welsh tax officials 12 months’ notice before imposing one.

The Welsh government, controlled at the time by Labour, gave councils the power to introduce a flat visitor levy last year. It said it would be used for “improving toilets, footpaths, beaches, visitor centres and activities”.

However, hotel bosses and hospitality leaders have warned that the introduction of tourist taxes across Britain will result in fewer jobs and less investment.

They argue that introducing similar levies in England will pile further pressure on a sector already reeling from increases in the minimum wage, employment taxes and business rates under Labour.

The Telegraph has called on the Government to intervene to support hospitality businesses with the Save Our Pubs campaign.

UKHospitality has estimated that the tax will cost English businesses at least £1.6bn.

In Wales, only Cardiff has confirmed so far that it will introduce a holiday tax from April next year.

Other Welsh councils have consulted on proposals. Pembrokeshire has ruled out introducing a tourist tax before elections next May.

Scotland has also introduced a tourist tax, with Edinburgh becoming the first city to add a 5pc surcharge to overnight stays.

Labour ministers have insisted a tourism tax in England would bring it into line with much of the rest of Europe and allow councils to channel money into supporting local high streets and services for residents.

However, Allen Simpson, the chief executive of UKHospitality, said of the decision to delay the tax in Gwynedd: “It’s clear the council were surprised that the people who will actually have to pay the tax oppose it. They shouldn’t be. Holidaymakers and people who work in the holiday industry know how silly this idea is.

“Councils should see this as a warning – introduce a tourism tax and you should expect to lose one of your biggest industries to areas that don’t. And then you can explain to your residents why you thought that taxing away their jobs was a good idea.”

A Cyngor Gwynedd spokesman said: “The original timetable allowed sufficient time to process the responses and present a further report to the council for a final decision in September 2026.

“However, due to a combination of factors it has been decided to pause this timetable. These factors include: the extension of the consultation period to 11 weeks, a significantly higher than expected number of responses and the need to give full consideration to the issues raised during the process.”



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