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The House | The Tourist Tax Is Coming – But How Will It Work? And Who Is Fighting It?

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The Tourist Tax Is Coming – But How Will It Work? And Who Is Fighting It?

Illustration by Tracy Worrall


10 min read

An overnight visitor levy is coming to England – but what will it look like? And will it be resisted? Noah Vickers reports

Take a flight to Rome, Lisbon or Amsterdam, check into your hotel and you’ll see it: a charge at the bottom of your bill. It might be called a city tax, an overnight levy or a tourist charge, but it means the same thing – a few extra euros you’ll have to pay up.

For a long time, the UK has been an outlier in Europe by not having tourist taxes, but that is starting to change.

In July, Edinburgh will introduce a five per cent charge on overnight stays, followed by other Scottish cities setting their own rates in 2027. That same year, councils across Wales will be free to impose levies of £1.30 per person per night, reduced to 75p for hostels and campsites.

Throughout its first year in office, the Labour government in Westminster was clear: England would not be joining them. As late as September 2025, the then-tourism minister Chris Bryant told Parliament there were “no plans” to enable the charge.

“Many people in the sector have made the point to me that they feel taxed enough,” he told the Commons. “I do not know that we would want to add any more to that.”

But just two months later, the government had changed its mind – provoking anger from the hospitality sector but joy from Labour mayors across England, who see it as a vote of confidence in the devolution agenda.

Under the Overnight Visitor Levy Bill, name-checked in last month’s King’s Speech, mayors will decide whether to have a tourist tax in their area and will collect revenues raised from it.

Yet questions remain over how the charge will be structured, how much discretion mayors will be given to vary it, and whether any spending from the proceeds will be ringfenced by national government. And as well as facing opposition from the Tories and Reform UK, including the parties’ mayors, the bill will also meet resistance from several Labour MPs in deprived coastal areas, who fear a backlash from hard-up voters watching the price of their staycation climb higher.

Why did the government change its mind? According to reports last year, Chancellor Rachel Reeves had been concerned about the tax reducing visitor numbers and hindering economic growth – but a sustained campaign by Labour’s mayors shifted the dial.

Steve Rotheram, the Liverpool city region mayor who played a key role in the talks with government, specifically Reeves and James Murray, then chief secretary to the Treasury, tells The House that the Chancellor was worried revenues raised from the tax would simply be used to plug gaps in cash-strapped local government.

“Just to say ‘we want an overnight visitor levy’ didn’t cut it,” he says. “Rachel’s a detail person, so she wanted to be convinced that it wasn’t going to go into potholes, or the pressures that people have got with childcare in their areas, or whatever it might be.

“When we went round the table, James – who was asking the questions – what he was after really were concrete examples of where it could be used to stimulate economic growth, and we were able to do that.”

Bassam Mahfouz, a Labour member of the London Assembly, says the levy could play a significant role in funding large infrastructure projects across the capital. Last year, he and colleagues on City Hall’s oversight committee visited Paris, where a tourist tax is being used to help fund a new metro network: the Grand Paris Express.

“Without fiscal devolution, political devolution is pretty much meaningless,” he says. “One of the key learnings that we took when we were talking to other cities across the world was that they all had additional financial levers, additional powers to raise revenues… You can’t be relying every time on going cap in hand to government.”

The government’s consultation on the levy says the money will “support local leaders to drive economic growth in their areas, and make their places more desirable to visit, live and do business in” – but the catch-all nature of that description has not impressed the hospitality industry, who fear their sector is being asked to pick up the tab for other parts of the economy. Instead, they say, revenues raised should be reinvested directly into boosting visitor numbers.

“It has to be ringfenced back into tourism,” says Labour MP Chris Webb, who chairs the APPG for Hospitality and Tourism. While some mayors may see it as “a possible way to get extra resources for local transport, police and other bits”, he cautions against this.

“We know from the previous government, once you start offering this tax, it then means there will be an expectation in any grant settlements the government gives that they will expect you to use that tax and to the maximum.”

The government has insisted it “will not compel any mayor to introduce this levy, nor will central government reduce funding for mayors if they decide to do so”.

Asked about how the revenue will be used, tourism minister Stephanie Peacock tells The House there is “a strong argument for ringfencing money for tourism, but the whole point of giving it to mayors is for them to make that decision”. Notable, it is the Ministry of Housing, Communities and Local Government (MHCLG) leading on the policy rather than Peacock’s Department of Culture, Media and Sport.

“Without fiscal devolution, political devolution is pretty much meaningless”

There is similar uncertainty over exactly what kind of tourist tax English mayors will get: a percentage charge like Scotland or a flat fee like Wales?

The government favours the percentage model, saying it would be “fairest and more flexible”, but several mayors are arguing for the flat fee.

North East mayor Kim McGuinness, for example, is drawing up plans for a £2 per night charge, which could raise close to £20m per year for her region. South Yorkshire mayor Oliver Coppard is also making the case for a flat fee, following feedback from local hoteliers.

In Liverpool, Rotheram agrees a flat fee would be simpler and quicker to put into law, though he adds that mayors should be able to make changes to the model in the longer term.

The House approached every other mayor who has expressed support for the charge to ask what model they favour, but all either declined to comment or claimed they were not in a position to say.

Among them was London mayor Sir Sadiq Khan, though his Labour allies on the London Assembly are advocating for the percentage model as the more progressive option.

And Andy Burnham, who could soon have more power than any of them to decide what the tax looks like? True to form, his office told the government that “mayors and local leaders should have the power to determine the charging model” for themselves, “based on local data and local consultation”.

Webb, by contrast, says the rate should be identical across every area imposing it: “That’s what I’m hearing from the sector – they want to see uniformity on this.”

Nor will the charge be necessarily limited to mayors, as the government is also considering giving the power to Foundation Strategic Authorities (FSAs) – a new tier of regional governance with only limited devolution.

Edinburgh Castle
Edinburgh Castle (Border Image/Alamy)

Cornwall, with more than four million visitors a year, looks likely to become one of those areas, and the county’s council is open to setting a tourist tax there.

“We fundamentally believe that all areas should have the power to decide whether to introduce an overnight visitor levy, regardless of whether they are a mayoral authority or FSA,” a spokesperson for the Liberal Democrat-run council said.

“We await further information from the government as to how such a levy would be implemented and will then consider whether it is the right thing to do for Cornwall.”

If tourist taxes are the norm in Europe, why should England’s hospitality industry be so vehemently opposed to them? Industry trade body UKHospitality points out that England already has a higher tax base than many continental destinations with tourist taxes.

VAT on accommodation in England is 20 per cent, compared with 10 per cent in Paris, Rome and Barcelona. The consumer, they argue, does not care whether their money is going to local or national government – their main concern will just be how much they’re paying overall.

“It is simply not true to say that this is a standard thing elsewhere in the world,” says Allen Simpson, UKHospitality’s CEO. “It’s not a question of who levies the tax, it’s a question of the tax level, and we are making one of our biggest export sectors uncompetitive.”

Increases in National Insurance contributions, business rates and the minimum wage have all caused the sector to shed jobs, he adds.

“The last two budgets have been an exercise in vandalisation against the hospitality sector. The sector was growing six per cent year on year and then the last two budgets have stripped out about 100,000 jobs.”

Modelling by Oxford Economics, commissioned by UKHospitality, suggests that the overnight levy would cause further jobs to be lost – potentially as many as 33,000 by 2030 if a five per cent charge were applied across England.

“There are certain areas where this will absolutely kill the local economy”

While Peacock admits “the sector will understandably have concerns” about the tax, Simpson claims that there also remains little enthusiasm for the policy across government.

“We’ve met the tax minister, the tourism minister, we’ve spoken to secretaries of state about it, we’ve spoken to No 10 about it, we’ve spoken to No 11 about it, we’ve spoken to the spads. I have yet to find anybody who actually thinks it’s a good idea,” he says.

“In politics, unfortunately, sometimes you find yourself doing things which you don’t think are a good idea because it’s politically expedient, and right now it is politically expedient to throw a bung to the mayors to keep them quiet.”

The organisation has also commissioned an MRP poll which reveals that a majority of voters in every mayoral authority are opposed to the tax. A majority also oppose it in 574 of Great Britain’s 632 seats.

While Labour’s urban MPs are likely to support the bill, some in deprived coastal constituencies are preparing to fight it.

“Small seaside towns like mine that rely largely on inward tourism from other parts of the UK – they’re not going to survive if this is implemented,” says South Shields MP Emma Lewell. “It’s just going to be one burden too many for them. They’re already struggling to stay afloat. This is going to see them off for good. I can’t sit back and allow that to happen…

“In areas like mine, this will be anti-growth – quite the opposite of what the government’s trying to do. I get that it might work in big cities, but there are certain areas where this will absolutely kill the local economy.”

She was as confused as anyone, she adds, when ministers reversed course on it last year: “There’s no massive clamour of MPs asking for it, the public don’t want it, it wasn’t in our manifesto, the industry certainly don’t want it… so I have no idea why the government is ploughing ahead with this.”

A spokesperson for MHCLG tells The House: “The visitor levy will give mayors more power to raise money and invest it in their priorities, like improving holiday destinations and growing the local economy to put more money in people’s pockets.

“The final design of the visitor levy has not been decided and it will ultimately be up to mayors to decide whether to use it, in consultation with businesses and others in their areas.” 

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Shabana Mahmood Says Politicians Should Not “Seek Personal Profit” From Henry Nowak’s Murder

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Home Secretary Says Politicians Should Not 'Seek Personal Profit' From Henry Nowak’s Murder

(House of Commons)


3 min read

Home Secretary Shabana Mahmood has said it is wrong for politicians to “seek personal profit” from the murder of Henry Nowak.

In a House of Commons statement on Tuesday, Mahmood described the murder as “an act of pure evil”.

Nowak, 18, was handcuffed by police and arrested while he lay dying on the ground in Southampton in December. He told the police officers he could not breathe after having been stabbed by Vickrum Digwa.

Digwa, 23, falsely claimed to officers on the scene that he had been a victim of a racist attack. On Monday, he was sentenced to life in prison with a minimum term of 21 years for the murder.

The case has prompted strong criticism of the police response.

The Independent Office for Police Conduct (IOPC), the police watchdog, has initiated an investigation into the conduct of the Hampshire and Isle of Wight Constabulary.

Mahmood told MPs that the IOPC would be given the “resources, authority and independence it needs to conduct a “full, fearless and transparent” investigation.

“Everyone in this country is equal before the law. It is the promise upon which our whole justice system rests, and the equality of every citizen is the foundation on which the openness, tolerance, and generosity of this country rests,” she said.

At the same time, the Attorney General’s office is considering whether to review Digwa’s sentence.

The Home Secretary told the House of Commons that the case was not about Sikhism, but about murder. 

“We cannot allow this murder to turn communities against one another. We must condemn those who seek personal political profit from tragedy,” she said.

“Instead, we must show who we really are in this country. This is a murder, a vile and violent crime. The punishment must be reserved for those who are responsible for the act. We do not believe in collective punishment in this country.”

Earlier on Tuesday, Reform UK leader Nigel Farage said Nowark’s death was an example of “two-tier culture” in the police in the UK, and that the public should respond with “pure cold rage”. He also called for the end of “anti-white prejudice”.

Conservative leader Kemi Badenoch told ITV’s Good Morning Britain there had been an overcorrection in British policing since the murder of George Floyd in the US in 2020. However, she accused Farage of exploiting Nowark’s murder.

“I don’t want to hear about black lives matter. I don’t want to hear about white lives matter. We all matter. Enough of this nonsense where we keep separating everybody and splitting people into different groups, we are descending into tribalism,” she said.

Addressing cabinet this morning, Prime Minister Keir Starmer said Nowark was a “kind, thoughtful and much-loved” whose life had been taken in “the most appalling circumstances.”

Starmer said Digwa had “shamelessly lied” about being accused of racism and said it was correct that the IOPC was investigating the police response, which he said needed to be carried out as quickly as possible and answers delivered. 

 

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The House | Stephanie Peacock: “I’ve Got No Time For Conversations About Rejoining The EU”

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Stephanie Peacock: 'I've Got No Time For Conversations About Rejoining The EU'

Photography by Louise Haywood-Schiefer


11 min read

Tourism minister Stephanie Peacock talks to Sienna Rodgers about introducing a controversial tourist tax and tackling short-term holiday lets – plus why Labour finds itself in a mess, but relitigating Brexit would be wrong

Tourism, sport and civil society minister Stephanie Peacock has purposefully chosen pieces from the government art collection that reflect both her brief and her constituency’s roots.

Football and rugby references are scattered across her generous departmental office, but perhaps most striking is a black-and-white painting of men digging grimly.

At The Coal Face by Nicholas Evans, Peacock reveals, became the subject of a conservation visit after the glass fogged up. It turned out the oil painting was ‘off-gassing’ – releasing chemical vapours, which is not uncommon for 1970s artworks. The special treatment it received is a clear example, she jokes, of Labour delivering for miners.

As MP for Barnsley South, Peacock represents a classic red wall seat with a deep mining heritage. Labour’s challenge in these areas is, of course, widely known: the story of constituencies held by the party for generations until voter loyalties eroded, lost first to the Conservatives and now to Reform UK. It is a tale with an almost tragic arc that lends itself easily to political reporting.

The diversity of Labour’s 2024 intake of MPs reveals its electoral coalition to be more complicated, however, than that narrative would suggest. There are at least as many newly elected representatives from the so-called ‘sea wall’ – coastal constituencies, reliant on seasonal economies, with often high levels of deprivation – as from the red one.

For Peacock, as tourism minister, revitalising seaside towns is a critical part of the government’s growth agenda – and it comes at a time when British tourism and hospitality is struggling with a downturn. “We’re very, very aware of the challenges that the sector is facing,” she says, “and we really want to do everything we can to promote British tourism.”

In her interview with The House, she announces the launch of the first national domestic tourism campaign since the Covid pandemic. From June, the government will spend £1.2m – which it hopes will reach £2m with private investment – on a fresh promotional campaign.

“Whether that be Whitby down the road from me, Yorkshire or Blackpool, Devon or Cornwall, the idea is to promote the brilliant coastal towns that we’ve got.”

At first, it will sell the general idea of Brits visiting the coast; then, in the autumn – the ‘shoulder’ season between peak and off-peak months – it will become place-specific, highlighting what each area can offer, from theme parks to food scenes. Online influencers will be harnessed as well as local print media.

“Our seaside towns have got lots to offer. Some have struggled over recent decades,” Peacock admits. “That’s something we want to address.”

This may be the first such campaign in five years, but critics could point out that the public spend of £1.2m does not compare well to London’s post-Covid tourism recovery effort in 2021, which benefited from over £4m of funding in its first year.

And while coastal MPs will no doubt welcome the PR drive, their chief concern is usually around turning these seasonal economies into year-round, ‘365’ ones. Peacock suggests “connectivity” is key to this – not only in terms of literal transport but the government hopes to showcase regions in a “joined-up way” by working with mayors to emphasise packages of activities in that area. The aim is to persuade tourists to explore further and stay longer.

Labour MPs and mayors don’t always see eye-to-eye on such matters, though. Until November, the government was resisting the idea of a tourist tax. “I don’t think we were opposed to it,” claims Peacock, although her predecessor Chris Bryant had told the Commons two months prior to the U-turn that they had “no plans” to introduce a tax because “many people in the sector have made the point to me that they feel taxed enough”.

To the dismay of some (though not all) Members on the green benches, in November the government gave in to mayors’ demands for the new tax-raising powers. While businesses and industry bodies such as UK Hospitality are firmly opposed, legislation to implement the levy on overnight visitors was confirmed in the King’s Speech.

“There’s no doubt there’s been a mixed reaction to the levy,” Peacock says. While mayors are “very positive” about it, she adds, “the sector will understandably have concerns”.

Asked where the revenue should go, she hints that she would prefer to see it ring-fenced though acknowledges this is out of her hands: “I think there’s a really strong argument for ring-fencing money for tourism, but the whole point of giving it to mayors is for them to make that decision.”

Peacock also recognises concerns from large hotel chains about having to navigate varying systems across regions: “If one mayoralty does it in a slightly different way to another, that will potentially present a challenge for a big national company. That’s something we’re considering. We haven’t made the decisions on that.”

Nor does she strongly rebut the argument that the levy would level down, by acting as a tax on non-Londoners who visit London, such is the capital’s draw. “Obviously, London is going to do well out of it because it has the most visitors – that’s inescapable. That is just a fact. But we have an intention, and we have an ambition, to get people to travel across the country.”

Short-term holiday lets are the other hot-button issue in tourism. Despite the considerable controversy around them, Peacock confirms the new campaign will not nudge visitors to choose hotels over Airbnbs.

“We’re not expressing an opinion or a direction. It’s for people to choose where they want to stay,” she says. “I think the issue around short-term lets is they have often a particularly detrimental effect on certain local areas, and that’s what the policy around the registration scheme will aim to address.”

The government’s delayed registration scheme, originally set to go live in April but now expected later this year before becoming mandatory in April 2027, will force short-term lets to declare their existence to local authorities. Owners will thus be identified and councils should get a better idea of how housing stock is being used in their areas. Lizzi Collinge, Markus Campbell-Savours and Neil Duncan-Jordan are among the Labour MPs who have complained to The House in the past that the scheme does not go far enough.

“There’s no doubt there’s been a mixed reaction to the levy”

So, what about a licensing scheme that could allow councils to take action such as capping the number of lets?

“I’ve heard colleagues express the point around a cap,” Peacock says, but insists that registration will be helpful to councils. “It’s important to take that step and see where we get to.”

In London, whole-property short-term lets are limited to 90 nights per year without planning permission. Yet the rule is unenforceable as authorities have no reliable data on lengths of stay. The minister promises to tackle these landlords: “We are very aware that, in the implementation of the scheme, we do need to also look at a parliamentary vehicle to deal with this issue around platform-hopping… We’re going to take action on it.”

Birmingham-born Peacock was just 30 when first elected to succeed Michael Dugher as a Barnsley MP in 2017. She had cut her teeth in politics as a particularly young youth rep on Labour’s ruling body, the national executive committee (NEC), joining aged 20. “I came from a Young Labour background, instead of a student background, and there’s no doubt it was a very interesting time to be on the NEC.”

Learning the ropes on the NEC, from the basics of the party’s governance structure to its constant factional wrangling over the rulebook, she did so alongside big characters like Ken Livingstone and Dennis Skinner. She began at the tail end of Labour’s time in government under Tony Blair, then saw Gordon Brown take over, and finally opposition under Ed Miliband.

Sitting alongside ministers and trade union reps from 2007 to 2011, she had a front-row seat for the demise of New Labour.

Despite this early start in politics, Peacock did not come from a Labour family: “I got involved in politics a little bit by accident through school.” It was a mock election that sparked her interest, which she relayed to her care worker father whose political activity did not extend beyond voting. “Oh, well, if you’re interested, we should go and meet your MP,” he replied, promptly booking an appointment at their local MP Sylvia Heal’s surgery. “It was very proactive of him,” she says now.

Photography by Louise Haywood-Schiefer
Photography by Louise Haywood-Schiefer

While on the NEC, she worked for Heal and studied part-time, before doing Teach First and qualifying as a teacher at north London’s Parliament Hill comprehensive. “Any teacher working at a secondary school, hats off to them,” she says. “I learned a lot from it, and it was great, but it’s just a challenging job.” From there, she taught for shop workers’ union Usdaw and later became a political officer at one of Labour’s biggest affiliates, the GMB union.

Having been linked to Tom Watson in the past, Peacock has hints of the ‘old Labour right’ about her politics – calling herself Labour’s biggest fan of the royals, for example – but she is now most closely allied with her boss, Culture Secretary Lisa Nandy, who hails from the ‘soft left’. Like her, Peacock is pleased that Andy Burnham has been allowed to run as a Labour candidate for Parliament.

“It was the right decision,” she says, using the now well-worn line, “We want the best players on the pitch”. “I’ve known Andy a long time,” she adds.

The Prime Minister, meanwhile, is in the strange situation of having to govern while a slow-motion leadership challenge is carried out. If Burnham wins in Makerfield, some would like a coronation, while others think a proper leadership contest should follow and others still believe the PM can continue in post for several months longer. What should Keir Starmer do on June 19?

“I mean, I’m not here to be advising the Prime Minister. He’s clearly focused on getting on with the job, and I think that’s absolutely right… As a government, we do want to deliver.”

Peacock is a serving minister and collective responsibility still, more or less, applies. But the polls would suggest that she might have a better chance of keeping her Reform-facing seat under a Burnham leadership.

“There’s no doubt, if you look at the election results in Barnsley a few weeks ago, that it was a very difficult night for my party,” she says, before reeling off a list of good things the local Labour council had done. “But people didn’t vote for them, and that’s really difficult, and that is reflective of people not feeling like their lives are getting better.”

She is particularly proud of changes to miners’ pensions, which she campaigned for – and yet in her ex-mining area, where Labour has lost power for the first time after Reform smashed its majority to bits, it wasn’t enough.

“It’s not working, no. It’s not,” Peacock replies bluntly. “I would argue all the things I’ve just said make a tangible difference. Clearly, they’re not going far enough, and I don’t think we communicate them as well as we could… Sometimes we have a habit of talking about something once and then moving on to the next thing, and that is a real problem.”

“It’s not working, no. It’s not”

Already, rejoining the EU has become a feature of the Schrödinger’s leadership battle taking place. The policy has been embraced enthusiastically by Wes Streeting, who is well aware of where his politics map well onto those of the party membership. The House suggests this may be rather irritating to Peacock.

“Yes,” she agrees. “It’s not my thing. I’ve got a very clear view on that. My area voted very clearly to leave. We could relitigate the whole Brexit debate, but I think people did that for a number of different reasons, and a lot of it was to do with feeling left behind, feeling like anything is better than what we’ve got. They voted leave for lots of reasons, and we left, and that was the right decision.

“I always respected the result, and my voting record shows it in the previous parliament. So, I’ve got no time for conversations about rejoining the EU, and I don’t think my constituents do either.”

While Labour’s most pro-EU wing argues that the emotional cost of relitigating Brexit would be worth the economic upside, tourist levy critics would similarly say the government should have resisted the demand for a measure they see as anti-growth. Instead, the soft left and metro mayors overcame Treasury caution and business opposition – perhaps a sign of things to come in a potentially Burnham-led future. 

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The House | Stephanie Peacock: “I’ve Got No Time For Conservations About Rejoining The EU”

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Stephanie Peacock: 'I've Got No Time For Conservations About Rejoining The EU'

Photography by Louise Haywood-Schiefer


11 min read

Tourism minister Stephanie Peacock talks to Sienna Rodgers about introducing a controversial tourist tax and tackling short-term holiday lets – plus why Labour finds itself in a mess, but relitigating Brexit would be wrong

Tourism, sport and civil society minister Stephanie Peacock has purposefully chosen pieces from the government art collection that reflect both her brief and her constituency’s roots.

Football and rugby references are scattered across her generous departmental office, but perhaps most striking is a black-and-white painting of men digging grimly.

At The Coal Face by Nicholas Evans, Peacock reveals, became the subject of a conservation visit after the glass fogged up. It turned out the oil painting was ‘off-gassing’ – releasing chemical vapours, which is not uncommon for 1970s artworks. The special treatment it received is a clear example, she jokes, of Labour delivering for miners.

As MP for Barnsley South, Peacock represents a classic red wall seat with a deep mining heritage. Labour’s challenge in these areas is, of course, widely known: the story of constituencies held by the party for generations until voter loyalties eroded, lost first to the Conservatives and now to Reform UK. It is a tale with an almost tragic arc that lends itself easily to political reporting.

The diversity of Labour’s 2024 intake of MPs reveals its electoral coalition to be more complicated, however, than that narrative would suggest. There are at least as many newly elected representatives from the so-called ‘sea wall’ – coastal constituencies, reliant on seasonal economies, with often high levels of deprivation – as from the red one.

For Peacock, as tourism minister, revitalising seaside towns is a critical part of the government’s growth agenda – and it comes at a time when British tourism and hospitality is struggling with a downturn. “We’re very, very aware of the challenges that the sector is facing,” she says, “and we really want to do everything we can to promote British tourism.”

In her interview with The House, she announces the launch of the first national domestic tourism campaign since the Covid pandemic. From June, the government will spend £1.2m – which it hopes will reach £2m with private investment – on a fresh promotional campaign.

“Whether that be Whitby down the road from me, Yorkshire or Blackpool, Devon or Cornwall, the idea is to promote the brilliant coastal towns that we’ve got.”

At first, it will sell the general idea of Brits visiting the coast; then, in the autumn – the ‘shoulder’ season between peak and off-peak months – it will become place-specific, highlighting what each area can offer, from theme parks to food scenes. Online influencers will be harnessed as well as local print media.

“Our seaside towns have got lots to offer. Some have struggled over recent decades,” Peacock admits. “That’s something we want to address.”

This may be the first such campaign in five years, but critics could point out that the public spend of £1.2m does not compare well to London’s post-Covid tourism recovery effort in 2021, which benefited from over £4m of funding in its first year.

And while coastal MPs will no doubt welcome the PR drive, their chief concern is usually around turning these seasonal economies into year-round, ‘365’ ones. Peacock suggests “connectivity” is key to this – not only in terms of literal transport but the government hopes to showcase regions in a “joined-up way” by working with mayors to emphasise packages of activities in that area. The aim is to persuade tourists to explore further and stay longer.

Labour MPs and mayors don’t always see eye-to-eye on such matters, though. Until November, the government was resisting the idea of a tourist tax. “I don’t think we were opposed to it,” claims Peacock, although her predecessor Chris Bryant had told the Commons two months prior to the U-turn that they had “no plans” to introduce a tax because “many people in the sector have made the point to me that they feel taxed enough”.

To the dismay of some (though not all) Members on the green benches, in November the government gave in to mayors’ demands for the new tax-raising powers. While businesses and industry bodies such as UK Hospitality are firmly opposed, legislation to implement the levy on overnight visitors was confirmed in the King’s Speech.

“There’s no doubt there’s been a mixed reaction to the levy,” Peacock says. While mayors are “very positive” about it, she adds, “the sector will understandably have concerns”.

Asked where the revenue should go, she hints that she would prefer to see it ring-fenced though acknowledges this is out of her hands: “I think there’s a really strong argument for ring-fencing money for tourism, but the whole point of giving it to mayors is for them to make that decision.”

Peacock also recognises concerns from large hotel chains about having to navigate varying systems across regions: “If one mayoralty does it in a slightly different way to another, that will potentially present a challenge for a big national company. That’s something we’re considering. We haven’t made the decisions on that.”

Nor does she strongly rebut the argument that the levy would level down, by acting as a tax on non-Londoners who visit London, such is the capital’s draw. “Obviously, London is going to do well out of it because it has the most visitors – that’s inescapable. That is just a fact. But we have an intention, and we have an ambition, to get people to travel across the country.”

Short-term holiday lets are the other hot-button issue in tourism. Despite the considerable controversy around them, Peacock confirms the new campaign will not nudge visitors to choose hotels over Airbnbs.

“We’re not expressing an opinion or a direction. It’s for people to choose where they want to stay,” she says. “I think the issue around short-term lets is they have often a particularly detrimental effect on certain local areas, and that’s what the policy around the registration scheme will aim to address.”

The government’s delayed registration scheme, originally set to go live in April but now expected later this year before becoming mandatory in April 2027, will force short-term lets to declare their existence to local authorities. Owners will thus be identified and councils should get a better idea of how housing stock is being used in their areas. Lizzi Collinge, Markus Campbell-Savours and Neil Duncan-Jordan are among the Labour MPs who have complained to The House in the past that the scheme does not go far enough.

“There’s no doubt there’s been a mixed reaction to the levy”

So, what about a licensing scheme that could allow councils to take action such as capping the number of lets?

“I’ve heard colleagues express the point around a cap,” Peacock says, but insists that registration will be helpful to councils. “It’s important to take that step and see where we get to.”

In London, whole-property short-term lets are limited to 90 nights per year without planning permission. Yet the rule is unenforceable as authorities have no reliable data on lengths of stay. The minister promises to tackle these landlords: “We are very aware that, in the implementation of the scheme, we do need to also look at a parliamentary vehicle to deal with this issue around platform-hopping… We’re going to take action on it.”

Birmingham-born Peacock was just 30 when first elected to succeed Michael Dugher as a Barnsley MP in 2017. She had cut her teeth in politics as a particularly young youth rep on Labour’s ruling body, the national executive committee (NEC), joining aged 20. “I came from a Young Labour background, instead of a student background, and there’s no doubt it was a very interesting time to be on the NEC.”

Learning the ropes on the NEC, from the basics of the party’s governance structure to its constant factional wrangling over the rulebook, she did so alongside big characters like Ken Livingstone and Dennis Skinner. She began at the tail end of Labour’s time in government under Tony Blair, then saw Gordon Brown take over, and finally opposition under Ed Miliband.

Sitting alongside ministers and trade union reps from 2007 to 2011, she had a front-row seat for the demise of New Labour.

Despite this early start in politics, Peacock did not come from a Labour family: “I got involved in politics a little bit by accident through school.” It was a mock election that sparked her interest, which she relayed to her care worker father whose political activity did not extend beyond voting. “Oh, well, if you’re interested, we should go and meet your MP,” he replied, promptly booking an appointment at their local MP Sylvia Heal’s surgery. “It was very proactive of him,” she says now.

Photography by Louise Haywood-Schiefer
Photography by Louise Haywood-Schiefer

While on the NEC, she worked for Heal and studied part-time, before doing Teach First and qualifying as a teacher at north London’s Parliament Hill comprehensive. “Any teacher working at a secondary school, hats off to them,” she says. “I learned a lot from it, and it was great, but it’s just a challenging job.” From there, she taught for shop workers’ union Usdaw and later became a political officer at one of Labour’s biggest affiliates, the GMB union.

Having been linked to Tom Watson in the past, Peacock has hints of the ‘old Labour right’ about her politics – calling herself Labour’s biggest fan of the royals, for example – but she is now most closely allied with her boss, Culture Secretary Lisa Nandy, who hails from the ‘soft left’. Like her, Peacock is pleased that Andy Burnham has been allowed to run as a Labour candidate for Parliament.

“It was the right decision,” she says, using the now well-worn line, “We want the best players on the pitch”. “I’ve known Andy a long time,” she adds.

The Prime Minister, meanwhile, is in the strange situation of having to govern while a slow-motion leadership challenge is carried out. If Burnham wins in Makerfield, some would like a coronation, while others think a proper leadership contest should follow and others still believe the PM can continue in post for several months longer. What should Keir Starmer do on June 19?

“I mean, I’m not here to be advising the Prime Minister. He’s clearly focused on getting on with the job, and I think that’s absolutely right… As a government, we do want to deliver.”

Peacock is a serving minister and collective responsibility still, more or less, applies. But the polls would suggest that she might have a better chance of keeping her Reform-facing seat under a Burnham leadership.

“There’s no doubt, if you look at the election results in Barnsley a few weeks ago, that it was a very difficult night for my party,” she says, before reeling off a list of good things the local Labour council had done. “But people didn’t vote for them, and that’s really difficult, and that is reflective of people not feeling like their lives are getting better.”

She is particularly proud of changes to miners’ pensions, which she campaigned for – and yet in her ex-mining area, where Labour has lost power for the first time after Reform smashed its majority to bits, it wasn’t enough.

“It’s not working, no. It’s not,” Peacock replies bluntly. “I would argue all the things I’ve just said make a tangible difference. Clearly, they’re not going far enough, and I don’t think we communicate them as well as we could… Sometimes we have a habit of talking about something once and then moving on to the next thing, and that is a real problem.”

“It’s not working, no. It’s not”

Already, rejoining the EU has become a feature of the Schrödinger’s leadership battle taking place. The policy has been embraced enthusiastically by Wes Streeting, who is well aware of where his politics map well onto those of the party membership. The House suggests this may be rather irritating to Peacock.

“Yes,” she agrees. “It’s not my thing. I’ve got a very clear view on that. My area voted very clearly to leave. We could relitigate the whole Brexit debate, but I think people did that for a number of different reasons, and a lot of it was to do with feeling left behind, feeling like anything is better than what we’ve got. They voted leave for lots of reasons, and we left, and that was the right decision.

“I always respected the result, and my voting record shows it in the previous parliament. So, I’ve got no time for conversations about rejoining the EU, and I don’t think my constituents do either.”

While Labour’s most pro-EU wing argues that the emotional cost of relitigating Brexit would be worth the economic upside, tourist levy critics would similarly say the government should have resisted the demand for a measure they see as anti-growth. Instead, the soft left and metro mayors overcame Treasury caution and business opposition – perhaps a sign of things to come in a potentially Burnham-led future. 

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