by The Downing Street supported Rachel Reeves and rejected Angela Rayner’s call for a tourist tax.
After her dispute with the Chancellor about councilors who accused visitors to use hotel rooms, the deputy prime minister used the finance minister to receive new powers to raise taxes in the Barcelona style.
She has teamed up with Labor Citizens, including Sir Sadiq Khan and Andy Burnham, to demand more “fiscal decentralized”, and called her “deeply disrespectful” to the councils that dictates her budgets.
But Ms. Reeves is against the idea and refused to grant further tax powers, the Telegraph reported on Monday. She emphasized the idea of the local authorities, which collected her own money on the taxes already collected by the real estate that had already been raised.
Labor Sources said that the difference in opinion was the focus of her tax policy, and Ms. Rayner had long asked for more decentralization of Westminster.
The Downing Street has now said that there are “no plans” to introduce tourist taxes in an obvious reproduction of Ms. Rayner’s position.
“Places can already decide to contribute a levy on night stays through cooperation with their local tourism sector, with the official spokesman for Sir Keir Starrers on Tuesday the official spokesman for Sir Keir Starrer.” Tourism obviously plays an important role in the British economy. “
When asked whether Ms. Rayner had campaigned for the guideline and why her department had discussed her with some local authorities, the spokesman added: “There are no plans to present them. Obviously, the government regularly advises on a variety of questions.”
The problem is the latest in a number of disputes between Ms. Rayner and Ms. Reeves on the tax directive.
At the beginning of this year, the Telegraph unveiled a leakage memo that was written by Ms. Rayner and indicates a number of tax increases to the Ministry of Finance. The ideas were rejected by Ms. Reeves, who was known that she is solely responsible for tax policy.
For some time, councilors and mayors have pushed to tourist taxes and believe that they could have a “transformative” influence on their areas for visitors.
Manchester and Liverpool both introduced a package fee of 2 GBP per night for hotel stays in their “corporate improvement districts”, but may make the tax tax rate from Westminster.
Many European cities, including Barcelona, Lisbon and Amsterdam, calculate a flat rate or a percentage tax on hotel stays.
The hospitality industry is against a similar system that is introduced in Great Britain and argues that the British “Tourism Competition” has been undermined by higher VAT than in many European countries.
Ms. Reeves will comply with the sector that further taxes on their profit after the employer’s national insurance tariffs increase in the budget of the past year and new employee rights rules that are expensive should be kept to a minimum.
A hotelier in Dorset said that a tourism levy would cost £ 600,000 a year and that travelers would go somewhere else to avoid this.
But last month Sir Sadiq told a podcast that tourists in European cities pay a “small tax” and say: “We could spend more money to improve the public area, which would encourage more tourists to come, but also to improve the quality of life for the residents in London.”
