Industry rejects bed tax proposals

The pub industry has rejected a proposal for the introduction of a "bed" tax on hotels and pubs with accommodation.

The Local Government Association (LGA) has suggested this as an alternative to raising money through higher local council tax. An extra charge would be placed on each hotel or bed and breakfast bed.

However, there is confusion as the LGA said no decision had been made whether the charge would be placed on the consumer, the pub company or licensee.

Russell Allen, licensee of the Fountain Inn in Tenbury Wells, Worcestershire, said: "It think it is absolutely disgusting. We are trying to offer facilities to attract tourists into the country and then we are expected to suffer this extra tax.

"We have spent a lot on disabled facilities, which we were happy to do. But now an extra charge could be put on those rooms; it's appalling. I bet Mr Blair doesn't have to pay for rooms on his holidays."

The British Hospitality Association believes the introduction of a bed tax will deter domestic demand for accommodation and damage UK tourist competitiveness.

Eddie Gershon, spokesman for Wetherspoons, which has seven Wetherspoon Lodges across the country, dismissed the idea.

"We would be totally against it. I don't think our customers would be too pleased when they turn up and are told they have to pay an extra charge on top of our one that has been imposed by the local council."

Adam Collett, marketing director of Greene King pub company, said: "I think it is a very bad idea. Why tax tourists and travellers? I think local authorities are picking an easy target."