Trade groups are joining forces to lobby the Government to abandon a controversial "bedtax" scheme, which, it is feared, could cripple businesses operating in popular tourist areas.
Under proposals being drawn up as part of a local government finance review, premises operating letting bedroom accommo-
dation would be forced to slap an extra 5% or 10% on top of each guest bill.
The plans would hit thousands of licensees operating the growing income stream of bed and breakfast rooms.
Leading leisure body Visit-Britain has already successfully lobbied culture ministers to oppose the scheme which aims to allow local councils to raise revenue by "bed-taxing" hotels, guest houses, pubs, holiday cottages and caravan sites.
The British Hospitality Association said was also actively campaigning for the scheme to be dropped.
The Federation of Licensed Victuallers Associations said the tax would penalise enterprising hosts.
"This will hit rural pubs that provide letting accommodation to help ensure their businesses remain viable," said the FLVA's Tony Payne. "Other operators are developing letting rooms to compensate for an expected drop in revenue through the forthcoming smoking ban."
Payne also believes that higher room rates would discourage tourists and others from booking into pubs.
Architects of the "bed tax" scheme believe there is a case for visitors to tourist areas to contribute to local services. But tourism chiefs believe the tax will be counter productive and compound Britain's £18bn "tourism deficit".
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Your CommentsRobert Feal-Martinez via email 01/06/2006"Isn't it amazing how these things never really go away. This was moutted 3 years ago and was roundly condemmed. Those of us with letting rooms believed the simple logic that it would put visitors off seemed to have one the day. But off course we forget that HMG expects more from LA's but gives them less. The industry of leisure pays millions in business rates but what do we get for it. A big fat zero. If LA's are allowed to do this it will indeed destroy many businesses who as Tony Payne rightly says have diversified to compensate for a smoking ban. Why doesn't the Government just say they don't want Pubs and Clubs to exist and be done with it. Lets hope this time all the trade organisations do speak with one voice, but I won't be holding my breath no doubt those who don't have rooms will not support a fight.
Graham Allman via email 01/06/2006"BED TAX" Beds are already taxed by way of council tax and vat paid on bills.Let us hope , ney pray, that this does not happen , but if it does , what will we do about it ? The same as every other tax , grin, roll over and pay it ,because we have to and havnt got the bottle or motivation to do anything about it. This government governs by "control" and control dampens free will. My good friend BOB FM suggests trade bodies getting together on this one , sorry Bob ,as we all know they will all want to be the chairman of the group or spit their dummies out !. Bob , im behind you on this one , lets show this government that we dont need red tape and will not stand for yet another tax for them to waiste. M.A. help the trade with this one PLEASE."