The question of whether Cornwall should introduce an overnight visitor levy, commonly called a tourist tax, has become the hottest topic in local politics. Last week, the Government signalled it would encourage such a measure, and the issue was promptly raised during the first full Cornwall Council meeting since Prime Minister Andy Burnham told CornwallLive that he would like to see it happen here. "I think it could be a major game changer in Cornwall, if it's pitched the right way," he said during an interview in Truro last month.
At yesterday's meeting, Restore Britain councillor Roger Tarrant questioned Sarah Preece, the council's Liberal Democrat portfolio holder for tourism. He asked: "Does the cabinet member agree with the concerns raised by UKHospitality that the introduction of a visitor levy in the form of a tourist tax would place additional pressures on the hospitality sector, particularly by discouraging domestic overnight stays, disproportionately affecting low income households and potentially leading to shorter visits and reduced visitor expenditure?"
Cllr Preece said she had given a keynote speech at a tourism sector summit organised by Cornwall Chamber of Commerce last Friday to discuss the possibility of a levy. "I was probably there as a singular voice in the room to say that in this point in time it is our responsibility, and particularly mine, to ensure that I am listening to the range of voices across Cornwall.
"We know that there are 16 million visits into Cornwall – 4.2 million of those are overnight. They have an impact on our communities and our infrastructure."
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"The overnight levy is part of a package that we are negotiating with the Government around our devolution settlement. The jury is out at this point in terms of how much evidence there is on which we can base an absolute rationale and decision. We will need to take a full impact assessment in order to be able to make a full decision on this and make a recommendation to this chamber about whether that levy will be introduced.
"This is going to take time. We are right at the beginning of this conversation. This is not a done deal – no decision has been made."
Cllr Tarrant responded: "Can the cabinet member explain to Cornish residents how Cornwall Council's administration can justify even considering imposing yet another tax on hospitality at a time when pubs are closing across Cornwall and trade estimates suggest that a 5 per cent levy could mean up to one million fewer visitors and the possible loss of over 10,000 jobs, many of them held by young people?
"Is the council not in danger of killing the Cornish golden goose that lays the Cornish golden egg?"
Cllr Preece said: "The sector have analysed from their perspective the cost and they make that cost in the wider set of terms. They're very astute. However, we need to look at what could be mitigated. We need to look at what those funds could deliver by way of apprenticeships or mitigation on costs. We need to look at how infrastructure could be improved to make us continue to be competitive. There's a whole range of data we need to assess.
"At this point, to make any judgement is unwise because we don't have the full set of impact assessments. That's not to say that the sector haven't got a valid concern."
Independent councillor Susanne Desmonde, who left Reform UK earlier this year, asked whether the council would employ officers to oversee the "stealth tax" and "how many officers will the council be employing and at what salaries?" She added: "This tax could discourage visitors to Cornwall. Therefore, jobs will be lost within the already fragile tourist industry in our county."
The council's Lib Dem leader Cllr Leigh Frost replied: "I don't think we can call it a stealth tax because if it is, they've done a really bad job of hiding it. We're all getting a little bit confused around the issue here. This is not an individual tax for Cornwall, this is a tax that is going to every strategic authority in the country.
"We are going to be the only hybrid strategic authority / council in the country. As a strategic authority in our own right, we will be the only council in the country that will have this. Councils elsewhere won't, it will be in the hands of the mayors. This council will get a vote on the overnight visitor levy once we are in that space.
"We're not even there yet with staff time, officer funding, how it's going to be implemented. We only got the guidance from Government on Friday last week."
Connor Donnithorne, leader of the Conservative group, said: "Would the leader of the council agree with me that a so-called tourist tax is anything but? It levies a new tax on visitors here on holiday as much as it does for people using B&Bs to be near loved ones in hospital and people travelling around Cornwall for business and work."
Cllr Frost responded: "You're absolutely right, it is not a tourist tax. It is if you are staying in a place overnight for more than 24 hours, you will pay a contribution towards those services that you don't pay for out of your council tax. I'm not sure as an authority how we decide how we levy it – these are all things we need to find out."
Cllr Donnithorne replied: "If this tax is introduced in Cornwall, it's a double tax on Cornish residents who pay council tax and then have to pay a new tax on simply staying overnight for business, work or anything else."
Could Tourist Tax Kill Cornwall’s Golden Goose?