A warning has been issued to the government, indicating that families could face challenges affording domestic vacations due to a proposed ‘tourist tax.’ This levy, suggested by the Labour party, would allow regional mayors in England to implement a “visitor levy” on overnight accommodations, a practice already in place in some European countries. The specific implementation details, whether a per-person fee or a percentage of the stay cost, are yet to be determined. Critics argue that this tax could significantly impact families, potentially adding over £100 to a two-week summer holiday bill for a family of four. In an extreme scenario, a family of six vacationing in May in Blackpool for £49 might see their expenses nearly double to £97.
UKHospitality, a trade organization, has raised concerns by sending a joint letter to Chancellor Rachel Reeves signed by 200 businesses. These businesses, both large and small, are cautioning about the potential negative repercussions of the proposed tourist tax on the industry.
In other news, Zoopla’s latest research has identified Sunderland as the most affordable city in England for property buyers. The average monthly mortgage payments in Sunderland amount to 17% of the typical monthly salary, with one or two-bedroom homes priced at around £106,700. Additionally, Havering in London and Aberdeen in Scotland have been highlighted as affordable property locations by Zoopla.
Greene King, a prominent pub group, is set to expand its franchise operations by opening 30 new franchise pubs this year, including locations in Scotland under the Belhaven brand, marking the company’s entry into Wales and the Southwest of England in 2026.
Moreover, data from the UK Finance trade body indicates a decrease in the number of mortgage borrowers falling behind on repayments, with 80,490 home owner mortgages in arrears during the final quarter of 2025 – a 4% reduction from the previous quarter. Despite the ongoing cost of living challenges, the decrease follows several Bank of England interest rate cuts.
This positive trend was mirrored in the financial markets, with the FTSE 100 hitting a new record high in early trading, providing a boost to pension savers and investors. The index of the UK’s largest listed companies surged, with the biggest gainer being Schroders, up over 28% due to an agreed takeover by US investment firm Nuveen.
French restaurant chain Côte Brasserie has introduced a special half-term offer for children, while Marks & Spencer has been recognized as Britain’s best in-store supermarket for customer satisfaction in a recent Which? survey. Asda and Morrisons, however, ranked lowest in the survey for both in-store and online shopping experiences.
The Office for National Statistics reported a modest 0.1% growth in the UK economy in the final quarter of 2025, below expert predictions of 0.2%. Chancellor Rachel Reeves highlighted the government’s economic strategies, emphasizing the country’s economic resilience and growth achievements.