Newquay BID asks when Cornwall becomes too expensive to visit

Six hundred pounds. That is roughly what one Newquay café expects to save from the latest Budget’s business rates changes, and the town’s business group says it will not last long once the next round of wage rises lands.

Newquay Business Improvement District (BID) has set out where it thinks the Budget falls short for Newquay’s town centre and visitor economy. It has also raised questions over how devolved funding would be handled in Cornwall, and made clear it has serious doubts about the proposed visitor levy.

The BID says some of the Budget measures are welcome. But it argues that rising operating costs, along with the prospect of more tax, are still putting heavy pressure on independent shops, cafés, restaurants and hospitality businesses in the town.

What Newquay businesses say they are up against

According to the BID, businesses across Newquay are dealing with rising wages, employer National Insurance, energy costs, rents, VAT and staffing expenses all at once. For many, it says, the combined effect is making it harder to stay profitable and plan ahead.

Mark Warren, representing Newquay BID, said: “We recognise that the Budget includes measures intended to support businesses, and any additional help is welcome. However, when we speak to businesses in Newquay, the message is consistent: the overall cost of running a business remains extremely challenging.

“The increase in the business rates relief threshold from £12,000 to £18,000 is a positive step, but for some businesses the actual saving is relatively modest. One local café we have spoken to estimates a saving of around £600, which can quickly be absorbed by increases in the National Minimum Wage and other operating costs.

“We need to look at the bigger picture. Our independent shops, cafés, restaurants and hospitality businesses are fundamental to the character and success of Newquay. Supporting them means supporting the entire town centre and visitor economy.”

The BID, which describes itself as politically independent, says its focus is on getting the best outcomes for Newquay’s businesses, residents and visitors.

Four asks for the high street

The BID wants more thought given to the costs facing physical shops and hospitality venues. It has picked out four areas where it believes progress would make a real difference:

• Further reform of business rates for retail and hospitality businesses.
• A cut in hospitality VAT from 20% to 10%.
• A review of employer National Insurance and wider employment costs.
• A fairer tax system that recognises what physical high street businesses contribute, alongside major online retailers and distribution operations.

The BID has long backed calls for lower hospitality VAT. It points to the VAT’s The Problem petition, spearheaded by chef Tom Kerridge and backed by more than 400,000 people, as a sign of how strongly the sector feels.

In its view, a sustainable high street needs businesses with the confidence and money to employ people, invest in their premises and keep offering the services that make Newquay a good place to live, work and visit.

📷Mark Warren, Newquay BID

Questions over how devolution money would be spent

The BID sees the proposed devolution arrangements as a chance to strengthen local decision-making and get investment where it is needed most.

But it has questions about how any extra funding would be managed and shared out, given the financial pressures and existing deficit at Cornwall Council. The BID wants clear guarantees that devolved money would be spent on its intended purpose, with transparency over how it is allocated.

Highways, parking, public facilities and wider town centre improvements remain priorities for Newquay businesses, it says.

Mark said: “Devolution has the potential to create real opportunities for towns like Newquay, but we need to understand exactly how that funding will work in practice.

“Cornwall Council already faces significant financial pressures and a substantial deficit. Our concern is straightforward: if additional devolved funding is placed under the control of the Council, what guarantees do we have that it will actually reach the places and projects it is intended to support?

“We cannot have a situation where additional funding is simply absorbed into existing financial difficulties rather than being invested in the infrastructure, services and communities that need it.

“We need transparency, accountability and clear safeguards. Newquay contributes significantly to Cornwall’s economy, and we need confidence that our town will receive a fair share of investment and have a meaningful voice in decisions about its future.”

Visitor levy: “Too expensive for people to visit?”

The proposed tourism or visitor levy for Cornwall is where the BID is most direct. In its current form, the BID says, the levy would struggle to win its support or that of most businesses across the county.

Its worry is that an extra charge could make Cornwall a pricier destination at a time when visitors are already paying more for travel, fuel, accommodation, food and leisure. The BID believes that could knock on to accommodation providers, restaurants, cafés, pubs, retailers and attractions that rely on visitor spending.

Mark said: “We need to be very clear about our position. In its current format, we would not expect the proposed visitor levy to receive the support of Newquay BID or the majority of businesses across Cornwall.

“Our businesses are already carrying significant taxation and operating costs, including VAT, employer National Insurance, business rates and rising employment costs. Visitors are also paying more to travel to Cornwall and to enjoy their stay.

“At what point do we reach a stage where Cornwall simply becomes too expensive for people to visit?

“Our visitor economy is incredibly important, and we should be doing everything we can to encourage people to come here, stay longer and spend money with local businesses, not introduce further costs that could put them off.”

Businesses want a central role

The BID is calling for a much wider review of the proposal before any decision, involving accommodation providers, hospitality operators, attractions, retailers, tourism organisations and Business Improvement Districts across Cornwall.

Mark said: “This is a decision that will directly affect the businesses expected to generate the revenue, so those businesses must be at the heart of the conversation.

“We do not believe decisions of this importance should simply be made by politicians without properly listening to the people who understand the visitor economy and will ultimately bear the consequences.

“Before any visitor levy is considered further, the whole proposal needs to be reviewed with the businesses that count. We need an honest assessment of the potential economic impact, the risk of making Cornwall less competitive as a destination and whether the benefits would genuinely outweigh the costs.”

If a levy were ever brought in, the BID says there would need to be complete transparency over where the money goes, and guarantees that the places generating it get a fair return.

“Newquay generates significant visitor revenue for Cornwall,” Mark said. “Our businesses and communities need confidence that any money raised locally will be reinvested locally, with Business Improvement Districts and town councils having a meaningful role in identifying priorities.

“However, our starting point must be whether an additional tax is right for Cornwall at all, particularly when so many businesses are already under pressure.”

📷Mark Warren, Newquay BID

“Our focus is, and always will be, Newquay”

The BID says the town’s future depends on businesses, local organisations, Cornwall Council and Government working together, and it welcomes constructive engagement. But it wants local businesses kept at the centre of any talks on tax, funding, infrastructure and the visitor economy.

Mark said: “We want a thriving town centre, successful independent businesses, a strong hospitality sector and a visitor economy that benefits the whole community.

“That means creating the right conditions for businesses to invest and grow, ensuring that funding is distributed fairly and making sure that any new initiatives deliver tangible improvements locally.

“We are not here to take a political position. We are here to represent the businesses of Newquay and to make sure their concerns are heard.”