As we approach the Autumn Budget, the Cornwall Visitor Economy Alliance (CVA) is calling on Government to recognise the importance of the visitor economy and the growing pressures facing tourism and hospitality businesses.
Cornwall’s visitor economy is a vital contributor to our local economy, supporting jobs, businesses and communities across the county. However, with rising operating costs, continued pressure on consumer spending and modest growth across the sector, businesses need greater confidence and stability to invest in their future.
Katie Warren, chair of Cornwall Visitor Alliance, has a clear message for the Chancellor ahead of the Autumn Budget: “We cannot afford further taxation or additional financial burdens that could hinder growth, increase pressure on businesses or deter visitors from choosing Cornwall. We need a Budget that gives businesses the confidence to invest, protects Cornwall’s competitiveness as a visitor destination, and recognises the visitor economy as an essential driver of economic growth.”
Cornwall Visitor Alliance sets out its priorities for the Autumn Budget:
1. A fair and considered approach to any visitor levy
We are concerned about the potential impact of additional visitor taxation on affordability, competitiveness and demand, particularly for coastal destinations such as Cornwall. If a visitor levy is progressed, it must be informed by independent regional economic assessments, with meaningful representation from the visitor economy in decision-making.
Any revenue must be ring-fenced for the visitor economy, with a clear and transparent proportion allocated to destination management. A flat-rate approach should be considered rather than a percentage-based charge. Any visitor levy should be exempt from VAT as it is a tax on top of a tax.
2. Relief from business rates and VAT pressures
We want to see measures that reduce, rather than increase, the financial burden on tourism and hospitality businesses. This includes meaningful business rates support and progress towards reducing tourism VAT to 10%, helping businesses remain competitive, protect jobs and invest in growth.
3. Recognition of the unique needs of a seasonal workforce
Changes to employment rights must recognise the seasonal nature of tourism and hospitality. Businesses need the flexibility to respond to fluctuating demand without facing disproportionate additional costs or administrative pressures. Supporting recruitment, retention and skills development must remain a priority.
4. Long-term funding and support for the visitor economy
We want to see a clear national Visitor Economy Growth Plan, backed by sustainable funding and greater recognition of the role of destination management. Destinations such as Cornwall need the resources to support infrastructure, transport, sustainability, business development and year-round growth, not simply destination promotion.
Katie concludes: “Ultimately, this Budget must support growth, not create further barriers to it. Cornwall’s visitor economy has enormous potential, but realising that potential requires a competitive business environment, a supportive policy framework and sustained investment.”
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