TAX NEWS: Councils back 'bed tax' idea. By Dan Martin

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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...

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06th Sep 2006 15:30

I can't quite see where they get the £100 from as I work it out to be £84 if its per person per night. Could someone explain in accountancy terms?

Paying per night per person is a rip off in my view. The best value comes from say £60 per room per night. One double bed and a sofa bed.

This way you could accomodate 15 or more occupants per room from former soviet block countries on work placement courtesy of an enlarged EC without increasing UK welfare costs.

I can forsee hotel rooms without beds where the guests bring along inflatable ones or sleeping bags so as not to be caught by the tax. Sorry sir! But we will have to charge extra if you want a bed.

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01st Sep 2006 11:06

More to pay out...
Oh dear. When will there ever be any good news? It's not just tourism that may suffer. As a regular user of hotels in the UK on business, this will no doubt add to the business costs of non-tourism industries since, if I were a hotelier, I would pass on the cost to my guests. Margins are probably already tight, especially for the lost cost big chains. It just seems to me that the Labour Government at all levels is looking for more and more obscure ways to fleece British business and British citizens, and in this case, foreign tourists as well. Is it any wonder that I am looking forward to retiring overseas where I will feel less "ripped off".

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01st Sep 2006 12:53

Taxing times
Can't the Govt think of anything else to do apart from tax and add more and more regulations?
Economies that generate employment are low tax ones! Why does this Govt. want to destroy the economy?

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07th Sep 2006 15:29

What are they doing with all the money?
Does anyone know where we can view a copy of the latest set of Accounts (in plain English please) for GB Ltd?

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