Labour Mayor Accuses Treasury of Blocking Tourism Levy Despite Devolution Pledge
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The Labour Mayor of the North East has criticised the Government for holding power "too tightly in Westminster" as she claims that calls for powers to introduce a tourism levy have been blocked.
The Government's landmark English devolution bill has its first proper debate a week today (September 2) when Parliament returns from recess.
The bill promises to give every area in England a devolution deal by 2030 - handing more powers to local and mayoral authorities. But while welcoming the bill, Labour's elected North East Mayor, Kim McGuinness, suggests Rachel Reeves' Treasury is blocking moves to give them powers to introduce a small tourism levy, as is common in many European countries.
Tourism hotspots including Cornwall and Bath have recently written to the Treasury urging ministers to let them implement a fee for visitors to bolster local services.
In a foreword to a new report from the progressive think tank Compass, McGuinness writes: "There is a long way to go until we truly devolve power…Progress has been slow because as a nation our leaders haven't trusted local people."
The Labour mayor, who was elected in May 2024, adds: "I want to charge a visitor levy, a small fee to stay in hotels. It's a charge that's so mainstream across the rest of the world you barely notice it. Yet, despite widespread support amongst mayors, we're struggling to get this off the ground. Power, once again, is being held too tightly in Westminster."
She is calling for Keir Starmer's Government to go much further than its current devolution plans, giving mayoral authorities powers to control taxes in their areas.
"Devolution cannot just be a tick box. It's not completed once a mayor is in place. We'll never see the true success of our regions without fiscal devolution. I'm not calling for it all at once, but small steps, including a visitor levy, would be a positive move to demonstrate the Government's commitment to a real dilution of power," McGuinness says.
She writes: "Mayors are using the powers we already have to deliver, but for us to make the difference that local people need, those in Westminster must go further. Ultimately, they must trust local people to know what's best for them."
The English Devolution and Community Empowerment Bill was introduced to the House of Commons in July, part of a manifesto pledge from Labour to move power outside of Westminster.
As Compass notes: "The bill brought the most wide-scale reform to local Government in England since the establishment of directly elected mayors in combined authorities outside of London in the Cities and Local Government Devolution Act 2016."
The bill establishes 'Strategic Authorities' - larger, single-tier councils across England, serving populations of approximately 500,000 people.
It will grant mayors enhanced powers to accelerate housing delivery, and enables mayors to borrow for major projects and infrastructure. It will also provide the new strategic authorities more oversight of transport (including e-bike regulation), adult education, housing planning, local healthcare, and the development of local growth strategies.
A new Local Audit Office will help scrutinise council expenditure amid a collapse in local Government financial scrutiny since the coalition-era abolition of the Audit Commission.
BREAKING
First Past the Post to Be Scrapped for English Mayoral Elections in Bid to Reverse Conservative 'Gerrymandering'
The move reverses changes made by the last Conservative Government, which was accused of seeking to "stitch up" elections in its own favour
Josiah Mortimer
The bill's two most significant provisions, in Compass' view, are the restoration of the supplementary vote system for mayoral elections and the introduction of a 'community right to buy', giving communities first refusal to purchase local institutions ...
Packed with exclusive investigations, analysis, and features
SUBSCRIBE TODAY
The Labour Mayor of the North East has criticised the Government for holding power "too tightly in Westminster" as she claims that calls for powers to introduce a tourism levy have been blocked.
The Government's landmark English devolution bill has its first proper debate a week today (September 2) when Parliament returns from recess.
The bill promises to give every area in England a devolution deal by 2030 - handing more powers to local and mayoral authorities. But while welcoming the bill, Labour's elected North East Mayor, Kim McGuinness, suggests Rachel Reeves' Treasury is blocking moves to give them powers to introduce a small tourism levy, as is common in many European countries.
Tourism hotspots including Cornwall and Bath have recently written to the Treasury urging ministers to let them implement a fee for visitors to bolster local services.
In a foreword to a new report from the progressive think tank Compass, McGuinness writes: "There is a long way to go until we truly devolve power…Progress has been slow because as a nation our leaders haven't trusted local people."
The Labour mayor, who was elected in May 2024, adds: "I want to charge a visitor levy, a small fee to stay in hotels. It's a charge that's so mainstream across the rest of the world you barely notice it. Yet, despite widespread support amongst mayors, we're struggling to get this off the ground. Power, once again, is being held too tightly in Westminster."
She is calling for Keir Starmer's Government to go much further than its current devolution plans, giving mayoral authorities powers to control taxes in their areas.
"Devolution cannot just be a tick box. It's not completed once a mayor is in place. We'll never see the true success of our regions without fiscal devolution. I'm not calling for it all at once, but small steps, including a visitor levy, would be a positive move to demonstrate the Government's commitment to a real dilution of power," McGuinness says.
She writes: "Mayors are using the powers we already have to deliver, but for us to make the difference that local people need, those in Westminster must go further. Ultimately, they must trust local people to know what's best for them."
The English Devolution and Community Empowerment Bill was introduced to the House of Commons in July, part of a manifesto pledge from Labour to move power outside of Westminster.
As Compass notes: "The bill brought the most wide-scale reform to local Government in England since the establishment of directly elected mayors in combined authorities outside of London in the Cities and Local Government Devolution Act 2016."
The bill establishes 'Strategic Authorities' - larger, single-tier councils across England, serving populations of approximately 500,000 people.
It will grant mayors enhanced powers to accelerate housing delivery, and enables mayors to borrow for major projects and infrastructure. It will also provide the new strategic authorities more oversight of transport (including e-bike regulation), adult education, housing planning, local healthcare, and the development of local growth strategies.
A new Local Audit Office will help scrutinise council expenditure amid a collapse in local Government financial scrutiny since the coalition-era abolition of the Audit Commission.
BREAKING
First Past the Post to Be Scrapped for English Mayoral Elections in Bid to Reverse Conservative 'Gerrymandering'
The move reverses changes made by the last Conservative Government, which was accused of seeking to "stitch up" elections in its own favour
Josiah Mortimer
The bill's two most significant provisions, in Compass' view, are the restoration of the supplementary vote system for mayoral elections and the introduction of a 'community right to buy', giving communities first refusal to purchase local institutions ...
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