What Cornwall’s tourism bosses want from this week’s Budget

Rising running costs. Cautious customers. And the prospect of a new charge on visitors. That is the backdrop as the group speaking up for Cornwall’s tourism industry sends its wish list to the Chancellor ahead of this Wednesday’s (28 October) Autumn Budget.

Cornwall Visitor Alliance is calling on the Government to recognise the importance of tourism and the growing pressures on tourism and hospitality businesses across the county.

The alliance describes itself as an independent, industry-led, not-for-profit organisation set up to champion Cornwall’s visitor economy. Its role covers leadership, advocacy, partnership, research and insight, while its marketing to visitors is delivered through the Visit Cornwall brand.

It says the visitor economy supports jobs, businesses and communities right across Cornwall. But with operating costs rising, consumer spending still under pressure and only modest growth in the sector, the alliance says businesses need more confidence and stability before they can invest in their future.

“We cannot afford further taxation”

Katie Warren, chair of Cornwall Visitor Alliance, has a direct message for the Chancellor.

“We cannot afford further taxation or additional financial burdens that could hinder growth, increase pressure on businesses or deter visitors from choosing Cornwall,” she said.

“We need a Budget that gives businesses the confidence to invest, protects Cornwall’s competitiveness as a visitor destination, and recognises the visitor economy as an essential driver of economic growth.”

The alliance has set out four priorities it wants the Government to act on.

A visitor levy, if one comes

The alliance says it is concerned about how extra taxes on visitors could affect affordability, competitiveness and demand, especially in coastal destinations like Cornwall.

If a visitor levy does go ahead, it wants the decision to be shaped by independent regional economic assessments, with the visitor economy given a meaningful seat at the table.

It is also asking for:

• any money raised to be ring-fenced for the visitor economy, with a clear and transparent share going to destination management
• a flat-rate charge to be considered instead of a percentage-based one
• any levy to be exempt from VAT, which the alliance describes as “a tax on top of a tax”

Business rates and VAT

The second priority is relief. The alliance wants measures that cut, rather than add to, the financial burden on tourism and hospitality firms.

That includes meaningful business rates support and progress towards reducing VAT on tourism to 10%. The alliance says this would help businesses stay competitive, protect jobs and invest in growth.

Seasonal staff

Cornwall’s tourism trade rises and falls with the seasons, and the alliance wants changes to employment rights to reflect that.

It says businesses need the flexibility to respond to changing demand without facing disproportionate extra costs or paperwork. Support for recruitment, keeping staff and building skills should remain a priority, according to the alliance.

A long-term plan for the visitor economy

Finally, the alliance is calling for a national Visitor Economy Growth Plan, backed by sustainable funding and greater recognition of destination management.

It says places like Cornwall need resources for infrastructure, transport, sustainability, business development and year-round growth, rather than for promotion alone.

The alliance’s founding directors have said they are available to talk about its priorities and the Budget more widely.

Katie concluded: “Ultimately, this Budget must support growth, not create further barriers to it. Cornwall’s visitor economy has enormous potential, but realising that potential requires a competitive business environment, a supportive policy framework and sustained investment.”