The organisation behind a controversial £2 nightly surcharge on Liverpool accommodation has dismissed the idea that it's a tax on tourists, amidst a legal challenge from Premier Inn's parent company, Whitbread plc.
The hospitality giant lodged an official complaint with the Ministry of Housing, Communities and Local Government following the approval of the visitor levy by 83 city hotels and serviced apartments, all part of the Accommodation Business Improvement District (ABID).
Implemented on June 1, the £2 city visitor fee is expected to generate around £9.2m over two years, with £6.7m earmarked for bolstering the city's visitor economy via a subvention fund. The charge will be managed and collected by hotels and serviced accommodation providers, either upon guest check-in or at the end of their stay.
This new £2 levy supersedes the previous system which funded the BID through a supplement on business rates. Bill Addy, CEO of Liverpool BID Company, which oversees the Accommodation BID, stated that the new charge was industry-led and aimed at enhancing the visitor economy.
Liverpool Council confirmed on Tuesday that it would join forces with the Liverpool BID Company to address Whitbread's concerns. Both the city council and the Liverpool BID Company expressed confidence that the ballot was conducted in accordance with legal stipulations, but pledged to scrutinise all issues raised and respond to the Secretary of State by the June 24 deadline.
In the meantime, the government has confirmed that receipt of the challenge does not suspend the effect of the ballot. Mr Addy insisted the new charge was not a tax, saying: "This visitor charge is an industry-led effort to boost the visitor economy, to have a say in how the hospitality sector is supported and tackle the challenges it faces. This has been a process entirely guided by the private sector board of hoteliers – who are using Business Improvement District legislation to make a difference for their industry and their city.
"It's in the very DNA of Business Improvement Districts to support business and make cities thrive, and this is at the heart of this. It isn't a political issue, it's far more important than that.
"Sometimes there are larger nationals that don't want to take part in what is a city-centred approach, and that's clearly their right. The value placed in this is by the hotels who have championed it themselves and their hope to create a circular and sustainable visitor economy which – as they have been clear since the Accommodation BID first launched in 2023 – is transparent in its investment directly to the visitor economy, and the visitor economy only."
A º£½ÇÊÓƵHospitality spokesperson stated: "º£½ÇÊÓƵHospitality is clear that as these decisions are made, the ballot process must be fair, timely and transparent. We have been made aware of an appeal against the Liverpool accommodation BID and we have therefore written to the BID with a suggested eight-week delay to its introduction to allow for the appeal to run its course."
A minister will now review the situation to decide whether the BID ballot should be declared void. Following advice from the government, Liverpool Council, in agreement with the BID, has decided that any additional funds raised under the new levy will be retained by the authority while the challenge is being considered.
These funds will be returned to the levy payers if the Secretary of State concludes that the ballot result needs to be invalidated.
The LDRS has sought responses from both Whitbread plc and the government.
