In order to recover the financial state left by the previous government, Britain’s current government has needed to commit to some significant changes. The last prime minister, Sir Keir Starmer, and his office were accused of moving too slowly and not doing enough to bring about growth.
So, in comes Andy Burnham, the new prime minister, who has been seen touring the country to get the details he needs to make some big fiscal calls. Response to his most recent announcement could be graded as mixed at best. He proposes an uncapped tourist tax on hospitality.
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As the former mayor of Manchester and culture secretary, Andy Burnham oversaw a few economic plans go down. One of the most prominent was the decision to back out of a super-casino in Manchester. In the years since, casino gaming has become very popular.
People now enjoy online Vegas slot games, though, rather than at a super-casino in Manchester. Of course, back then, the availability of such a site couldn’t have been foreseen. Featured slots like Langley St 23, jackpots like Game of Thrones, and even classics like Bonanza have evolved well beyond the confines of a casino hall.
The venue would have provided a very different experience to the popular online gaming format, though. It would have needed to adapt quickly to compete with the online offering, but could have been a huge draw for tourists. Burnham has, seemingly, been keen to get more out of the tourism industry in other ways.
Back in November 2025, months before being named the new prime minister, the mayor of Manchester welcomed plans for a new tourist tax. He said that such a tax would help to fund local projects, especially as mayors would be given the power to impose what was then labelled as a ‘modest’ charge. Now in charge, he’s gone a step further.
At the end of August, just a couple of weeks before the latest announcement, Burnham was being praised for his action on business rates. Sentiment in the hospitality sector became more positive, with charts showing a ‘Burnham bounce’ of optimism. Even so, there were still calls to get further tax relief to help the up-against-it sector.
On 10 September, Burnham announced his plans to implement a tourist tax without a limit. It’d allow mayors to set the levy as a percentage of the cost of accommodation on people who stay overnight. This way, they say, it will protect budget holidays as the percentage charge should keep costs comparatively low.
This didn’t go over well with hospitality sector leaders. Many have cited that jobs will be at risk as a result, citing the effects of the tourism tax in Edinburgh. To counter, many places in Europe levy a similar tax, with some in the most tourist-reliant areas being rather high but not a hindrance to their tourist flow.
Some in the hospitality sector have said that previous discussions led them to believe that the levy would be capped. Now, it’s being reported that mayors of the governing party are eyeing up a five per cent tax. The resilient sector has weathered much in recent years, so some are assuming that it’ll be able to adjust to this change, too.
Given the backlash, there may yet be some amendments made to the plan. For now, though, Burnham isn’t exactly winning over hospitality heads.