Ministers face backlash from hospitality industry over ‘tourist tax’ plans

Lyme Regis beach in Dorset. The overnight visitor levy will potentially generate tens of millions of pounds to be spent in local areas. Photograph: Imgorthand/Getty Images

Ministers are facing a backlash from the hospitality industry after they announced mayors in England would be given sweeping powers to levy taxes on holiday accommodation such as hotels and Airbnbs.

The plan, presented on Thursday by Angela Rayner, the local government secretary, will allow mayors to impose a “tourist tax” without a cap on how much they can charge and with few controls on how they can spend it.