- Chancellor John Healey is reportedly considering classifying holiday lets as second homes rather than businesses, introducing a new tax ahead of the Budget.
- Tourism leaders have warned the move could cost property owners between £1,000 and £3,000 annually, potentially forcing many to sell their businesses.
- Treasury minister James Murray confirmed the department is reviewing short-term let tax treatments following concerns over small business rates relief usage.
- The tax raid comes amidst warnings that the government needs to find up to £10bn in tax rises or spending cuts due to economic pressures.
- The news follows separate plans to grant local leaders powers to introduce an uncapped tourist tax on overnight accommodation.
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