Rt Hon Sir Julian Smith KCB CBE, Member of Parliament for Skipton and Ripon, has joined fellow North Yorkshire MPs in signing a joint letter to Mayor David Skaith expressing strong opposition to the proposed Tourism Levy being considered by the York and North Yorkshire Mayoral Combined Authority.
The MPs argue that the proposal amounts to a tax on family holidays and would impose significant pressure on the small, independent and family‑run businesses that form the backbone of the region’s tourism economy.
The letter sets out concerns raised by businesses across North Yorkshire. Many are uncertain about who would ultimately be required to pay the levy, questioning whether it would be limited to leisure visitors or extended to business travel, day visitors or those using attractions, parking, and hospitality venues. Accommodation providers, in particular, fear being placed in the position of unpaid tax collectors, potentially absorbing additional administrative costs and card‑processing fees without assurance of a simple or cost‑neutral collection system.
The MPs also highlight the risk that levy‑related income could inadvertently push small businesses over the VAT threshold, jeopardising their pricing structures, competitiveness and long‑term viability. They warn that without explicit protections in place, businesses may feel forced to reduce capacity or could even face closure. Equally concerning is the lack of clarity over how revenue from the levy would be managed. Many local operators want guarantees that any funds generated in their communities would be ringfenced and reinvested locally, rather than absorbed into a broader central budget with limited transparency or local influence.
Another issue raised in the letter is the absence of clear, publicly available information on the administrative costs of implementing and enforcing the levy. Without clarity on the cost of collection, compliance and enforcement, the MPs argue it is impossible to judge whether the proposal would bring any net benefit or simply add further bureaucracy. For these reasons, the MPs call for the process to be paused immediately so that detailed impact assessments can be published and meaningful engagement can take place with local MPs and the tourism sector before any further steps are taken.
Commenting, Julian Smith MP said, “Our tourism sector is under pressure from every direction, and the last thing small businesses need is another cost placed on their shoulders. A new levy could push many businesses to the brink and make it harder for families to enjoy our region. The Mayor should pause this proposal immediately and rethink it before real damage is done."
The letter is co‑signed by Julian, Kevin Hollinrake MP, Rishi Sunak MP, and Alec Shelbrooke MP. You can read the full letter here.
