Scarborough B&B boss fears ‘uneven playing field’ tourist tax

by | Sep 1, 2026 | Business

Scarborough B&B boss fears 'uneven playing field' tourist tax

A consultation on a visitor levy in North Yorkshire concluded in February, with legislation anticipated to be introduced later this year. The proposed tax would apply to overnight stays and represents a point of contention among business operators and visitors in the region.

James Rusden, proprietor of Toulson Court B&B in Scarborough, expressed concerns about competitive disadvantages should the levy be implemented unevenly across Yorkshire. He argued that without uniform application across neighbouring regions, cost-conscious tourists would likely redirect their spending to areas without such charges. Rusden also raised concerns about the timing of implementation, given ongoing pressures on household finances and anticipated increases in energy costs. He noted that visitor numbers to his establishment have already declined, with guests reducing their stays from multiple nights to fewer days.

Local officials remain divided on the proposal. David Skaith, the elected Labour mayor for York and North Yorkshire, characterized a visitor levy as potentially transformative for the region’s economic development and tourism infrastructure. The mayoral office commissioned research to evaluate both advantages and drawbacks of such a mechanism. In contrast, Luke Campbell, Reform UK mayor for Hull and East Yorkshire, has previously stated the levy would be unsuitable for his region.

Among visitors surveyed, opinions varied. Some stated they would pay modest daily fees if implemented across the country, while others expressed concerns about how revenue would be allocated. A visitor from Derbyshire suggested that local infrastructure improvements, particularly public facilities, should be prioritized if funds were collected. Academic research from York St John University’s business school emphasized the importance of maintaining tourism industry participation in governance decisions and ensuring levy revenues support the sector itself.

Government representatives emphasized that mayoral powers to introduce such levies would enable local communities to retain more economic benefits from tourism and direct resources toward community priorities.

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