A warning has been issued by the government regarding a potential ‘tourist tax’ that could make staycations unaffordable for families. Small businesses, including guesthouses and B&Bs, fear that this tax could lead to closures.
The Labour party is suggesting that regional mayors in England should be allowed to implement a “visitor levy” on overnight stays, similar to what exists in some European countries. While the exact details of this proposal are yet to be finalized, it could involve either a per-person fee or a percentage of the total stay cost.
Critics argue that for a family of four on a two-week summer vacation, this tax could increase their expenses by over £100. In a more extreme scenario, a family of six spending four nights in Blackpool for £49 could see their costs nearly double to £97.
UKHospitality, a trade body, has sent a joint letter signed by 200 businesses to Chancellor Rachel Reeves, expressing concerns about the potential negative impact of this tax.
In other news, new research from Zoopla has revealed the most affordable property hotspots in the UK. Sunderland tops the list as the most budget-friendly city in England, with average monthly mortgage payments amounting to 17% of the typical monthly salary. On the other hand, Havering in London and Aberdeen in Scotland were identified as affordable areas for property buyers.
Greene King, a pub company, has announced plans to open 30 new franchise pubs this year, expanding its operations into Wales and the Southwest of England by 2026. The company recently celebrated reaching a milestone of 100 franchise Hive and Nest concept pubs.
Additionally, mortgage arrears among homeowners have decreased, with 80,490 mortgages in arrears in the final quarter of 2025, representing a 4% drop from the previous quarter. Despite the ongoing cost of living challenges, the number of mortgage borrowers facing repayment issues has declined, partially attributed to Bank of England interest rate cuts.
The FTSE 100 index reached a new record high in early trading, providing a positive outlook for pension savers and investors. The UK’s biggest listed companies experienced a surge, with the index surpassing 10,500 points, supported by strong performances in European markets as well.
French restaurant chain Côte Brasserie has introduced a special half-term offer for children, offering discounted meals with adult purchases. Marks & Spencer has been recognized as the top in-store supermarket for customer satisfaction in a recent survey conducted by Which?, while Asda and Morrisons ranked lowest for both in-store and online shopping experiences.
Despite slower growth in the final quarter of 2025 than expected, the UK economy showed improvement over the year, with Chancellor Rachel Reeves emphasizing the government’s economic strategy to strengthen the economy and support growth and investment nationwide.