Deputy PM wants councils granted power to charge for hotel stays

The Deputy Prime Minister has called for councils to be given the power to introduce tourist taxes as a means to fill local coffers. The move aligns Angela Rayner with regional mayors including Sir Sadiq Khan and Andy Burnham, but the Chancellor is reportedly loath to introduce constitutional reforms that could take time to implement and which could harm local economies. Rachel Reeves has been warned by hospitality groups that further taxes would risk making their businesses unprofitable after a year of higher taxes under Labour. Mel Stride, the shadow chancellor, told the Telegraph: “Labour can’t help themselves – it’s always tax, tax, tax. Whether it’s Angela Rayner or Rachel Reeves, the instinct is always the same – more taxes. First a £25bn jobs tax, now threats of a tourist tax that would hit hospitality hard.”