Holiday Tax Fears Grow as Petition Launched in Cornwall

Concerns are being raised about the future of Cornwall’s tourism industry after a petition was launched opposing plans for a new 5% Holiday Tax.

On 23rd March 2026, Cornwall Conservatives announced the petition following a request made by Cornwall Council’s Liberal Democrat administration on 18th March to seek permission from Whitehall to introduce the tax.

Residents, workers and business owners across the South West are being encouraged to support the campaign by signing the Stop the Holiday Tax petition.

Concerns Over Impact on Tourism

The proposed tax comes after the Government confirmed in November 2025 that local authorities would be allowed to introduce such charges. The decision followed a campaign led by the Liberal Democrats, who welcomed the move, stating:

“It’s fantastic to see that our campaign for a tourist tax has finally been realised.”

Cornwall is one of the most tourism-dependent areas in the country, and concerns have been raised about how additional costs could affect visitor numbers.

Cllr Connor Donnithorne, Leader of the Conservative Group at Cornwall Council, said:

“The Holiday Tax is an act of economic self-harm for Cornwall. The Government’s plan, demanded by the Liberal Democrats, punishes families for choosing to holiday at home and penalises small businesses simply for operating here.

As a restaurateur myself, I know that our region relies heavily on domestic tourism to sustain jobs and incomes. Even a modest shift towards overseas travel will cost local jobs, cut wages, and damage already fragile coastal economies. Ministers must reverse this damaging decision immediately.”

Warnings Over Rising Costs

Figures included alongside the announcement suggest that rising costs could influence holiday decisions.

According to the data:

• 39% of Britons say they would consider holidaying abroad if UK breaks become more expensive
• A 5% tax could add over £60 to a typical week-long UK family holiday
• UK holidays already carry an estimated overall tax burden of around 27%

Nigel Huddleston MP, Shadow Secretary of State for Culture, Media & Sport, said:

“Labour’s approach risks making family holidays in the UK more expensive at a time when many households are already under pressure.

There is a real danger that higher costs will push people to holiday overseas instead, which would be a blow to the small, family-run businesses that underpin our seaside towns and rural communities.

Tourism supports thousands of jobs across the country, particularly in areas like the South West, and we should be doing everything we can to support the sector, not add further burdens.”

The Bigger Picture for the South West

Tourism plays a significant role in the South West economy, with 377,000 jobs, or 12.3% of all employment, linked to sectors such as accommodation, food services, arts and recreation.

This figure does not include additional roles supported by tourism in areas like retail, transport and administration, meaning the overall number of jobs connected to the industry is likely higher.

For coastal communities, even a small drop in visitor numbers could lead to fewer hospitality shifts, reduced retail income and fewer seasonal job opportunities.