East Devon tourist tax row ends with demand for consultation

East Devon District Council instead agreed to express concerns about an overnight visitor levy and demand consultation before any such charge is introduced in Devon.

No levy was introduced or approved at the full council meeting on Wednesday, October 14.

The debate followed a motion from Cllr Mike Goodman (Sidmouth Sidford, Conservative), who warned that an additional accommodation charge could damage businesses already struggling with rising costs.

“We spend public money encouraging people to stay in East Devon. Why would we support a new tax that makes staying here more expensive?” he asked.

Cllr Goodman argued that the consequences could extend beyond accommodation providers to restaurants, shops, attractions and employment.

He urged councillors to unite against a levy and make clear that East Devon was open for business.

Earlier, Alex Gwillim, director of Sidmouth-based Sweetcombe Cottage Holidays, addressed the meeting on behalf of the agency, its staff and property owners.

She said the family-run business represented more than 160 properties across East Devon and worked with more than a hundred local housekeepers and tradespeople.

Alex warned that an overnight levy could affect domestic visitors, rather than simply tourists arriving from overseas.

Using a hypothetical rate of five per cent, she said it would add £50 to a £1,000 holiday without providing additional income for the accommodation business.

“This is not necessarily new money entering our local economy,” she said.

“It could simply divert existing visitor spend away from our cafés, restaurants, pubs, shops and attractions, or discourage visitors from coming altogether.”

She also questioned how businesses could be confident that revenue collected in East Devon would benefit the communities where visitors stayed.

Alex called for an independent economic impact assessment, direct involvement from accommodation providers and clear guarantees about reinvestment locally.

Council leader Cllr Paul Arnott (Coly Valley, Liberal Democrats) said he understood the concerns but argued that outright opposition was premature.

He told members that enabling legislation had not yet been passed and that any future decision would require consultation.

Cllr Arnott proposed replacing the original position with an amendment expressing concerns, asking the Devon and Torbay Combined County Authority to take them into account and seeking a commitment to consult East Devon.

He said consultation should include visitors themselves, as well as tourism businesses.

“I just think tonight it’s too soon to give a definitive ‘no, no, no, no, no’,” he said.

The disagreement became heated when Cllr Arnott described Cllr Goodman’s proposal as political and acknowledged that he had not shared his amendment with him beforehand.

Cllr Goodman rejected that suggestion, insisting his motion was about protecting businesses.

“My motion was purely about the businesses in East Devon,” he said.

He refused to accept the amendment, describing himself as “dumbfounded” by the leader’s approach.

Cllr Nick Hookway (Exmouth Littleham, Liberal Democrats), portfolio holder for culture, leisure, sport and tourism, seconded the amendment.

He argued that the council needed a pragmatic approach and highlighted the pressures of VAT and energy costs on hospitality businesses.

Cllr Paul Hayward (Axminster, Independent), portfolio holder for assets and economy, also stressed that East Devon did not have the powers to introduce a levy.

He called for lobbying to reduce hospitality VAT and warned against political point-scoring over an issue affecting businesses.

Cllr Lee Mason (Exmouth Brixington, Conservative) urged members to support the original motion.

Drawing on his experience of working in tourism, he said businesses depended on summer income and were already seeing visitors reduce spending.

He described seeing more people take their own food and drinks to attractions, rather than spending at cafés and kiosks.

The leader’s amendment was carried, followed by approval of the amended motion.

The council will write to the chair and constituent authorities of the Devon and Torbay Combined County Authority, setting out its concerns and asking that no levy be introduced in Devon without East Devon being consulted.

Members also agreed to continue working with tourism businesses and partners to increase overnight stays, extend the visitor season and grow spending across the district.