Hotel group challenges city's 'tourist tax'

A major hotel group is challenging a £2 "tourist tax" charge added to overnight stays for visitors to Liverpool.

Whitbread, which owns Premier Inn, said the visitor levy which came into force on Sunday should be voided.

The charge was voted for by of the city's Accommodation Business Improvement District (ABID) in a ballot earlier this year.

Of the 83 hotels in Liverpool who were asked, 59% (26) were in favour, on a turnout of 53%. The levy is mandatory for all hotels in the city above a certain rateable value, regardless of whether they took part in the ballot or whether they opposed the charge.

According to the ABID, a £2 city charge per room per night could bring in over £9m pounds over two years, to the visitor economy.

However, the idea has had its critics.

Whitbread chief executive Dominic Paul has said that hotels, restaurants and bars were being held back by higher labour costs and faced additional burdens from possible surcharges on overnight accommodation.

Writing in The Times, he said the hospitality industry "finds itself on the receiving end of a series of government interventions which together will significantly hold back our ability to contribute to growth".

The government has confirmed it had received a request from Whitbread for the ballot result to be voided.

Liverpool City Council said it was confident the ballot was conducted according to legal requirements, but will look at the concerns raised by the challenge by the deadline of 24 June.

A minister will consider the response in determining whether the ballot should be declared void.

The government said hotels could continue to collect the cash from visitors, pending the outcome of the challenge, but visitors would be refunded if it is successful.

The challenge comes as regional mayors, led by Liverpool City Region's Steve Rotheram, have asked government to devolve powers to raise such taxes at local level, rather than via a BID ballot which is the only means available at the moment.

Harry Doyle, Liverpool City Council's cabinet member for health, wellbeing and culture said Whitbread's challenge "reinforced the council's position and that of the mayors that visitor levies would benefit from a new national arrangement, established under the proposals for devolution."

He added: "The case for a visitor levy has been made and is being advocated across the UK."

The BBC has ed Whitbread for comment.

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