Powys councillors vote to consult on proposed tourism tax

Councillors have voted to conduct a fact-finding mission with residents and tourism businesses on whether or not to implement the Welsh Government’s tourism levy in Powys in the future.

At a Powys County Council meeting on Thursday, October 9 councillors received a report on the Welsh Government’s Tourism Levy.

The report outlined how the council could address the levy and presented five options for councillors to choose.

Option Two had emerged as a preferred option and the report explained that this is to be: “Minded not to implement the levy, but undertake an engagement exercise with the residents, businesses and tourism stakeholders of Powys to gather evidence and views on this decision.”
This would help inform the council whether or not to implement the levy at a point in the future.

Cllr Pete Lewington (Conservative – Newtown West) said: “I’m disappointed that there’s no detailed financial assessments of the impacts of the levy with this report, we really do need those.

“We need to consider the impact on employment as many jobs are reliant on the tourism industry which brings many economic benefits to our county.

“This is a nasty tax on domestic holidays and will hit hard-pressed families.”

He suggested that councillors should support Option One in the report.

This option proposed not to implement the levy at all.

Reform UK’s Cllr Karl Lewis (Llandinam and Dolfor) claimed that implementing the levy would “jeopardise” millions of pounds of investment and economic benefit that holiday parks in his ward had brought to the Newtown area.

Powys Independents joint-group leader, Cllr Beverley Baynham (Presteigne) said: “If we’re mindful not to implement the levy, why are we going to spend money having a huge consultation?

“I live very near the border.

“Several tourist park and visitor accommodation owners have contacted me are saying please if we introduce a levy people are going to go over the other side of the border (to England).”

She said her group would not support Option Two.

Cabinet member for Legal and Regulatory services Cllr Richard Church (Liberal Democrat – Welshpool Castle) said: “I find it odd saying not to proceed with anything because we don’t have all the information.

“Part of the reason for seeking to engage on this subject is to gather that evidence and information either for or against introducing the scheme.”

Potentially he wanted to see any money raised by the levy re-invested in tourism infrastructure and promotion.

Plaid Cymru’s Cllr Gary Mitchell (Llanbrynmair) said: “We do need to see better figures and information behind it.

“We do need to consult with visitors that come here as well not just the business owners locally as I think they will have very different opinions.”

He added that the levy would be for the whole of Powys which includes Bannau Brycheiniog National Park and potentially a sliver of northern Powys which could be put into a new national park covering parts of north east Wales.

“They would not have their own tax raising powers on this, it would be up to us to decide and implement on their behalf,” said Cllr Mitchell.

Eventually councillors went to a vote, which saw 29 votes in favour of Option Two, 19 votes against it and one abstention.

The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill is Wales’ first locally designed tax.

The legislation was approved by the Senedd in July and is expected to receive Royal Assent later this year.

The levy is a charge on overnight accommodation and would cost £0.75 (75 pence) per person per night for those staying at campsites and hostels, excluding people under 18.

For those staying in all other types of visitor accommodation it would cost £1.30 per person per night.

The Welsh Government say that if all local authorities introduced this levy, it could generate up to £33 million a year across Wales.

This money could be used by councils to invest in infrastructure especially that which is associated with tourism.