The government has been cautioned that families could face challenges affording domestic vacations due to a proposed ‘tourist tax’. Small enterprises, such as guesthouses and B&Bs, are concerned about potential closures resulting from this levy. The Labour party is suggesting that regional mayors in England should be able to implement a “visitor levy” on overnight stays, similar to practices in some European nations. While the specifics of this proposal are not yet finalized, it could entail a per-person fee or a percentage of the accommodation cost.
Critics argue that a family of four embarking on a two-week summer trip might see their expenses increase by over £100. In an extreme scenario, a family of six vacationing in Blackpool for four nights at £49 per night could witness their costs nearly double to £97. UKHospitality, a trade body, has sent a collective letter signed by 200 businesses to Chancellor Rachel Reeves, expressing concerns about the potential repercussions.
On a different note, Zoopla’s recent study has identified Sunderland as the most budget-friendly city in England for property purchases, where the average monthly mortgage payment is just £408, equating to 17% of the typical monthly income. In comparison, Havering in London has been recognized as the most affordable borough, with an average property price of £305,200, approximately 7.3 times the average earnings of £41,600 for a single buyer. Aberdeen in Scotland emerged as the most economical city for single buyers, with average monthly mortgage costs of £438 based on an average property value of £114,700.
In business news, Greene King has announced plans to launch 30 new franchise pubs this year, expanding its operations into Wales and the Southwest of England in 2026. Additionally, mortgage borrowers falling behind on repayments have decreased, as reported by UK Finance, with 80,490 homeowner mortgages in arrears in the last quarter of 2025, marking a 4% decline from the previous quarter.
The FTSE 100 achieved a new record high in early trading, reaching over 10,500 points, providing a positive outlook for pension savers and investors. Meanwhile, Côte Brasserie introduced a special half-term offer for kids, and Marks & Spencer was recognized as Britain’s top in-store supermarket for customer satisfaction in a recent Which? survey. Despite a modest 0.1% growth in the UK economy in the final quarter of last year, Chancellor Rachel Reeves highlighted the government’s economic strategy to strengthen the country’s economy and create favorable conditions for growth and investment.