Cumbria is considering a tourist tax to raise funds for local services. The new mayor, elected in 2027, could introduce this levy as part of wider powers granted through devolution. The tax aims to address the strain caused by millions of visitors each year.
Similar schemes elsewhere, like Edinburgh, project millions in annual revenue from such levies. The debate around the tax is a key issue in the upcoming mayoral election.
Devolution and New Powers for Cumbria
The Mayor of Cumbria, to be elected in May 2027, will lead the Cumbria Combined Authority. This role includes managing economic growth, housing development, and transport planning. Devolution has transferred significant decision-making powers from Whitehall to Cumbria.
The authority has a £333 million Mayoral Investment Fund over 30 years and may access new revenue streams, including a visitor levy. Current preparations involve council leaders setting up governance and staffing structures.
Projected Revenue from Tourist Levies
A 2023 study by the Northern Powerhouse Partnership estimated that a £1 per night tourist levy could raise nearly £60 million annually in the North West, assuming 65% hotel occupancy. Edinburgh expects £45-50 million yearly from its visitor levy by 2028/29.
Support for the Tourist Tax
Labour candidate David Allen supports the tax, citing the impact of 40-50 million annual visitors on local services. He highlighted issues like fly-camping and litter, which strain resources. Allen believes the tax would fund necessary services without harming local businesses.
Liberal Democrat candidate Libby Bateman also backs the levy, emphasising the need for funds to maintain roads, schools, and social care. She stresses the importance of consulting with the tourism industry to design a fair system that supports businesses.
Opposition and Concerns
Conservative candidate Mike Starkie opposes the tax, warning it could increase costs for visitors and workers. He fears small businesses in the competitive holiday market would suffer. Starkie argues the levy might lead to fewer shifts for workers and lost contracts for suppliers.
Impact on Cumbria’s Tourism Sector
The debate highlights the challenge of balancing economic benefits from tourism with the costs to local infrastructure. The tax aims to ensure visitors contribute fairly to maintaining the county’s services and environment. The outcome will depend on the mayoral election and subsequent decisions.
