THE government’s controversial “tourist tax” proposals have been created to benefit big cities, according to a Devon MP, at the expense of rural holiday locations.

Richard Foord (Lib Dem, Honiton and Sidmouth) was one of the local MPs to contribute to a House of Commons debate on the proposed Overnight Visitor Levy.

The government has announced plans that will grant regional mayors and combined authorities in England the power to implement a charge on paid overnight stays.

The fee, which would be likely to be capped at five per cent, would apply to hotels, B&Bs, hostels, campsites, self-catering accommodation and short-term lets.

Mr Foord told the House: “Businesses in Devon have told me of their concern about this proposed visitor levy, including Littlecourt Cottages in Sidmouth.

“They point out that the tourist footfall might decrease, not just for the cottages, but for the restaurants, the attractions and the shops in the local area. This tax has been dreamed up on the basis of what it will do for cities that see a higher proportion of wealthy overseas visitors, has it not?”

Local government minister Jim McMahon, however, insisted that it had not.

“Of course it has not,” said. “Fundamentally, it is for local leaders and local mayors to get together and work out what is right for their area.”

Torbay’s Liberal Democrat MP Steve Darling told the minister: “Tourists visiting Torbay already pay double the rate of VAT compared with those visiting Italy, France or Spain.

“The reality is that a cost of living crisis is just the wrong time to implement a tourism tax.”

And he called on Mr McMahon for an assurance that Airbnb operators will also pay their fair share.

The minister replied: “We could not have allowed a situation in which our guest houses and hotels are undercut by Airbnbs that are not included in the scheme, so this will apply right across the board.”

And Caroline Voaden, the Liberal Democrat MP for South Devon, said that as vice-chair of the all-party parliamentary group for hospitality and tourism, she had yet to hear any operator in the tourism sector say they support the levy.

“A caravan park operator said that if numbers go down in the off-season, they will only be able to be open in the high season, which has a knock-on effect on jobs, the local pub and the local café,” she added.

“It has a ripple effect across the local economy.”