Local councils are backing plans to introduce a controversial 'bed tax' on hotel accommodation despite strong opposition from the tourism industry which claims it would cost the sector millions of pounds every year.
According to the 'Financial Times', the Local Government Association (LGA) has endorsed the proposal which is being considered as part of Sir Michael Lyons' inquiry into the financing of local government.
Acknowledging that it would be "thoroughly unpopular" for backing the idea, it claimed that it should be up to local authorities to decide whether to impose the tax.
But the British Hospitality Industry (BHI) attacked the suggestion as "undemocratic" and potential damaging to tourism-related businesses. Tourism revenues, it said, could be reduced by 550m a year due to visitors be...