A new ‘tourist tax’ proposed by Labour could potentially price families out of staycations, according to warnings received by the government. The introduction of a “visitor levy” on overnight stays by regional mayors in England may result in closures of small businesses like guesthouses and B&Bs. While the exact implementation details are still under discussion, the levy could either be a per-head charge or a percentage of the stay’s cost.
Critics argue that this tax could significantly increase holiday expenses, with projections suggesting it could add over £100 to a family of four’s bill during a two-week summer vacation. For example, a family of six vacationing in Blackpool for four nights at £49 might see their expenses nearly double to £97.
In response to this proposal, trade body UKHospitality has issued a joint letter signed by 200 businesses to Chancellor Rachel Reeves outlining the potential negative impacts of the tax. The letter emphasizes concerns about the repercussions on businesses, both large and small, within the tourism sector.
In other news, Zoopla’s recent research has identified Sunderland as the most affordable city in England for single buyers, with average monthly mortgage payments amounting to just £408. In comparison, Havering in London stands out as the most affordable borough, with typical property prices at £305,200 for a one or two-bedroom home.
Furthermore, Greene King has announced plans to expand its franchise operations by opening 30 new franchise pubs in 2026, including ventures in Wales and the Southwest of England. This initiative follows the successful establishment of 100 franchise Hive and Nest concept pubs.
Additionally, the number of mortgage borrowers facing repayment difficulties has decreased, with 80,490 home owner mortgages in arrears during the last quarter of 2025. Despite ongoing economic challenges, including the cost of living crisis, the decrease in arrears is attributed to recent Bank of England interest rate cuts.
Moreover, the FTSE 100 index has reached a new record high, with significant gains benefiting pension savers and investors. The index surged by around 34 points in early trading, surpassing 10,500 points, reflecting positive market trends across Europe.
Lastly, French restaurant chain Côte Brasserie has introduced a special half-term offer for children, providing a two-course kids’ meal for £1 with every full-price adult main course. This promotion, available through the restaurant’s app, joins a range of deals announced by various chains for the school holiday period.