What Cornwall’s tourism leaders made of the Autumn Budget

A little welcome news. A fair bit of disappointment. And one possible new charge the industry really does not want.

Cornwall Visitor Alliance says the Government should have gone further to support the visitor economy and the businesses behind it in Wednesday’s (28 October) Autumn Budget. It did, however, welcome the recognition of Cornwall as a single Foundation Strategic Authority.

According to the alliance, the Budget offers limited direct support to an industry already dealing with rising employment costs, pressure on profitability and less capacity to invest. That is a concern for tourism and hospitality businesses right across the county.

“This Budget falls short”

Katie Warren, chair of Cornwall Visitor Alliance, said the sector had been calling for meaningful support that has not arrived.

“We cannot ignore the fact that this Budget falls short of the meaningful support our sector has been calling for. Businesses continue to face substantial employment and operating costs, and there has been no reduction in tourism VAT or targeted relief from employers’ National Insurance contributions,” she said.

“Some additional business rates relief is very welcome, but it does not address the overall tax burden or give businesses the confidence they need to invest.”

A levy at “the wrong time”

The biggest worry for the alliance is the prospect of an overnight visitor levy.

“The prospect of an overnight visitor levy is particularly concerning. Our position remains that this is the wrong tax at the wrong time,” Katie said.

“With visitor demand already under pressure, we should be encouraging people to visit Cornwall and supporting businesses to invest, not introducing additional costs that could undermine competitiveness. In addition to taxing our visitors, it is also a tax on local people who enjoy exploring Cornwall, often in the out of season months where businesses rely on that footfall.”

The alliance wants any move towards a levy to start with proper evidence.

“Any consideration of a levy must begin with a robust, independent assessment of its economic impact on Cornwall, alongside meaningful consultation with the businesses and communities affected,” Katie added.

New powers for Cornwall

There was a warmer response to Cornwall’s new status as a Foundation Strategic Authority.

“We welcome Cornwall’s recognition as a Foundation Strategic Authority and the opportunities that greater local decision-making could bring,” Katie said. “We are determined to work with Cornwall Council and industry partners to ensure that these new powers translate into investment, growth and opportunities for communities across Cornwall.”

Young people and family firms

The alliance points to tourism’s role in creating jobs, particularly for younger people, and helping them move into skilled, permanent careers.

“We welcome investment in apprenticeships and support fair pay, but employers also need practical help to manage rising costs and sustain quality jobs throughout the year,” Katie said. “If tax burdens prevent business growth, the employment and career opportunities will simply not be created.”

Many of Cornwall’s tourism and hospitality businesses are family-owned, some going back generations. The alliance welcomed the Chancellor’s recognition of the importance of protecting genuine family business succession.

“We look forward to understanding what practical support may follow,” Katie said.

“Tourism is good for Cornwall”

The alliance believes Cornwall has everything it needs to be one of the UK’s great tourism success stories, pointing to its natural environment, gardens, coastline, heritage and attractions. But it says that ambition has to be matched by investment and policies that let businesses thrive.

“We want to build on these strengths to establish Cornwall as a national success story for sustainable tourism, where a thriving visitor economy helps protect our environment, creates opportunities for young people, and delivers lasting benefits for residents and businesses,” Katie said.

“Ultimately, our message is that Cornwall’s visitor economy is an opportunity for growth. We want to work constructively with Government, Cornwall Council and our industry partners to turn that potential into real investment, more jobs, stronger businesses and thriving communities.

“Tourism is good for Cornwall, and Cornwall Visitor Alliance is determined to ensure it delivers the greatest possible benefit for the whole county.”