The government has been cautioned that families might face difficulty affording domestic vacations due to a proposed ‘tourist tax’. This proposal by the Labour party suggests empowering regional mayors in England to implement a “visitor levy” on overnight stays, a concept already in place in some European nations. While the specifics of this tax are yet to be finalized, it could be either a per person fee or a percentage of the accommodation cost.
Critics argue that for a family of four on a two-week summer holiday, this tax could potentially increase their expenses by over £100. In an extreme scenario, a family of six vacationing in May for four nights in Blackpool at £49 could see their expenses nearly double to £97. Small businesses, including guesthouses and B&Bs, fear that such a tax might lead to closures.
UKHospitality, a trade body, has taken action by sending a joint letter signed by 200 businesses of various sizes to Chancellor Rachel Reeves, highlighting the potential negative impacts of this proposed tax.
In other news, Zoopla’s recent research has unveiled the most affordable property hotspots in the UK. Sunderland emerged as the most budget-friendly city in England, where average monthly mortgage payments account for 17% of the typical monthly salary. Conversely, Havering in London and Aberdeen in Scotland were identified as the most affordable areas in their respective regions for single buyers.
Moving on to the hospitality sector, Greene King has disclosed plans to inaugurate 30 new franchise pubs within the upcoming year. This expansion includes ventures in Scotland under the Belhaven brand for the first time and further expansions into Wales and the Southwest of England in 2026.
Furthermore, mortgage arrears among borrowers have reduced, as reported by UK Finance, with a 4% decline in the number of arrears for home owner mortgages in the final quarter of 2025, despite the ongoing cost of living crisis.
In the financial markets, the FTSE 100 achieved a new record high in early trading, providing a positive outlook for pension savers and investors. The index of the UK’s major listed companies surged, reaching over 10,500 points by mid-morning, with other European markets also hitting record levels. Notably, Schroders experienced the highest rise, up by more than 28%, following an agreement for a substantial takeover.
Lastly, French restaurant chain Côte Brasserie has introduced a special half-term offer for children, joining numerous other chains providing similar promotions. Marks & Spencer was recognized as Britain’s top in-store supermarket for customer satisfaction in a recent survey by Which?, outperforming competitors with its quality, service, and overall shopping experience.
