A leading Cumbrian accountant has urged tourism businesses to prepare for a future visitor levy.
Following the first mayoral election in May 2027, a newly elected mayor will have the power to introduce an overnight tax.
Lamont Pridmore said data showed that Cumbria attracted an estimated 41 million visitors annually, meaning a tourism tax could have wide-reaching impacts across the regional economy.
No tax is currently in place in the county and none is expected before 2028 at the earliest.
A formal consultation is underway to settle the design of any future scheme, including the rate and how it would be collected.
Graham Lamont, chief executive of Lamont Pridmore, said: “There’s clearly a case on both sides of this debate and Cumbria’s tourism businesses are right to keep a close eye on it.
“What matters most now is the detail rather than the principle. A well-designed levy, built with the industry rather than imposed on it, has a much better chance of working than one rushed through without proper consultation.
“Our advice to clients is to plan for the possibility without assuming any particular outcome, and to make sure their voice is heard while the consultation is still open.”
The Lake District’s visitor base relies heavily on caravan parks, self-catering cottages and family-run guesthouses, which often operate on tighter margins than city-centre hotels.
Opponents argue the local tourism economy is price sensitive and a small additional charge could push visitors towards cheaper alternatives.
Supporters of a levy, including the charity Friends of the Lake District, highlight the pressure millions of visitors place on roads and footpaths alongside what they see as chronically low Government funding for the national park.
2024 STEAM data revealed Cumbria and the Lake District attracted over 33 million day visitors who would not be subjected to any accommodation-related surcharge.
The incoming authority will have powers similar to schemes already running or planned in Edinburgh, Manchester, Liverpool and Glasgow.
Edinburgh’s five per cent levy on overnight accommodation launches in July 2026 and is expected to raise up to £50 million a year.
Manchester and Liverpool have run flat-rate charges of £1 and £2 per room per night since 2023 and 2025 respectively.
Any new levy would land on top of VAT that tourism businesses already pay. UK hospitality and tourism services are charged VAT at the standard 20 per cent rate.
Mr Lamont added: “There are clear concerns about a future tourism tax in Cumbria that we share.
“It could be another hit to tourism. Cumbria Tourism’s most recent business performance survey, which we sponsor, highlighted that 77 per cent of businesses are concerned about increased costs.
“However, we fully appreciate that these taxes can be used to support overstretched infrastructure and can be invested, if managed properly, back into communities afflicted by the pressures that tourism can bring.
“We will watch this space closely and are standing ready to support local businesses during the consultation phase to help them manage any emerging economic impacts.”
Evidence from other destinations showed a levy’s success depended heavily on how it was introduced.
The Balearic Islands brought in a bed tax in 2002 without meaningful consultation and repealed it within two years after visitor numbers fell, before introducing a successful replacement in 2016.
Lamont Pridmore advised local operators to use the time before 2028 to prepare by following the consultation and building potential costs into their medium-term financial planning.
