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Tourism Tax

Volume 447: debated on Wednesday 14 June 2006

To ask the Secretary of State for Culture, Media and Sport what (a) assessment she has made of and (b) research she has commissioned on the potential impact that a bed tax on tourist accommodation would have on the tourism industry. (77531)

I have commissioned neither an assessment nor research on the potential impact of a bed tax. Sir Michael Lyons is considering a wide range of local government role and funding issues, including the potential for local taxes and charges. The Government will not take any decisions on changes to local government finance, until it has had the chance to consider and reflect on Sir Michael’s report and recommendations, due at the end of 2006. I will fully assess the potential impact of Sir Michael’s recommendations once he has made them, as is appropriate in the case of an independent review, and respond accordingly.