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TOURISM businesses should be fully consulted before any new levy on overnight stays is introduced in Eastbourne, councillors have said.
Eastbourne Borough Council debated the Government’s proposed Overnight Visitor Levy at a meeting on Wednesday, September 30, following concerns about the potential impact of the charge on the town’s hospitality industry.
The Government confirmed plans last month to give mayors and other strategic authority leaders powers to introduce a percentage-based levy on overnight accommodation, with money raised available for investment in areas including public transport, high streets and tourism.
A motion brought by Conservative group leader Councillor Robert Smart had called for Eastbourne Borough Council to formally oppose the proposed powers.
Cllr Smart described the levy as “yet another tax” and warned of the pressures already facing hotels and other hospitality businesses.
He said: “The hospitality industry … is a very difficult industry in lots of ways. It is hit by 20 per cent VAT. It has business rates. It has rising wage and employee costs … and the substantial cost of maintaining and investing in large buildings.”
But councillors ultimately backed an alternative motion put forward by Liberal Democrat cabinet member for tourism and place, Councillor Jenny Williams.
Cllr Williams argued it would be premature for the council to oppose the levy before the details of how it could operate in Sussex were known.
She said: “I understand the instinct and we are sympathetic, but we don’t have a Sussex mayor yet and we won’t likely have one for a year.
“There is no settlement telling us how it would work. So we would be voting against a proposal that has no detail and that is not a position I want to put this council in.”
Her alternative motion said there should be “full consultation with those impacted businesses and consideration given to alternative options” before any levy was introduced.
Councillors also backed the principle that any money raised from overnight stays in Eastbourne should be allocated and spent in Eastbourne.
The motion noted that the Eastbourne Hospitality Association and Friends of Eastbourne Seafront are already exploring the potential creation of a tourist accommodation Business Improvement District (BID).
Such a scheme would be established and run by businesses within the sector and could raise money from participating businesses to support the local visitor economy.
The amended motion was criticised by Conservative councillor David Small, who said it “feels almost like an attempt to say nothing”.
His comments prompted a response from Liberal Democrat councillor Colin Murray, who said his group was “united in supporting the hoteliers in this town around doing what is best for them and for the community to improve the tourism take up within the area”.
Councillors ultimately voted in favour of Cllr Williams’ alternative motion.
The Government says the proposed Overnight Visitor Levy will allow local leaders to raise money for investment in their areas, while individual strategic authorities will decide whether to introduce one.
The first mayoral election for Sussex is due to take place in May 2028.
