70% of people in the North East would cut back or stop taking holidays in the UK because of the proposed holiday tax, a major UKHospitality poll has found.

The survey of over 10,000 adults across Great Britain also found that two in five in the North East (38%) would be more likely to holiday abroad instead, raising concerns about the potential impact on visitor numbers at local holiday destinations across the UK.

At a national level, almost three quarters of Brits (73%) said they would be forced to cut back or stop UK holidays should the levy be introduced, with nearly 1 in 5 saying they would stop booking a holiday in England altogether if there were any level of tax implemented.

It comes after the Government announced plans to introduce the levy in the King’s Speech last week. It marks a major U-turn after ministers made commitments to the House of Commons that they would not introduce such a tax.

Hospitality is critical to tourism in the North East, supporting 118,000 jobs and contributing £2.1 billion to the region's economy.

The UK Government is proposing to allow regional mayors to impose a tax on all overnight stays in hotels, holiday parks, holiday lets, B&Bs and AirB&Bs. UKHospitality has calculated the tax could saddle a family of four with an extra £100 or more for a two-week break.

Opposition to the tax is strongest amongst people already struggling to make ends meet. Over 85% of the most financially vulnerable say they would be negatively affected, with almost one third (31%) scrapping domestic trips altogether.

The poll also showed that voters across the country are nearly 10 times more likely to reject an MP who supports the holiday tax than back them. Nearly half (47%) said they would be less likely to vote for their existing MP if they supported the tax, compared with just 5% who said it would make them more likely to back them.

The polling, which included MRP modelling, revealed that a majority oppose the tax in over 90% of constituencies in Great Britain (573 out of 632). 40% of 2024 Labour voters across the country said they would be less likely to re-elect an MP who supported the tax, including 51% in the North East.

The warning also cuts across the political spectrum: 45% of Conservative 2024 voters said they would be less likely to re-elect an MP who supported the tax, alongside 40% of Liberal Democrats, 47% of Greens, and 53% of Reform UK voters.

This polling should be a wake-up call for every MP tempted to back the holiday tax. It is opposed by a majority of their constituents, it would deter millions from holidaying in England, and it would hit hardest the very families the Government says it wants to help.

In her Spring Statement, the Chancellor said being able to pay for a holiday should never be too much to ask, but this tax puts a holiday out of reach for many.

Voters are nearly 10 times more likely to punish their MP for backing this tax than to thank them for it. That is a political signal no MP should ignore. The public’s verdict is clear and decisive: stop the holiday tax. Let’s keep holidays relaxing, not taxing.

It's very disappointing to see the Holiday Tax in the King's Speech - adding further pressure to a sector already facing a disproportionate tax burden. The public polling is clear – consumers do not support additional costs on UK holidays, particularly in a cost-of-living crisis.

If we are serious about supporting economic growth, jobs and the UK's competitiveness as a destination, we should be unlocking the full potential of hospitality and tourism, not holding them back.

We oppose any proposal that takes away people's chance of a holiday, and this polling shows exactly why. For many families, a holiday tax won’t mean choosing a different type of break – it will mean not going on holiday at all. The numbers here are stark and in an already price-sensitive market, even small increases can be the tipping point between booking and staying at home.

Guests holidaying across our three resorts supports jobs, local businesses, and long-term investment and the data shows 78% are worried about the impact on their local economy. At a time when there’s a real opportunity to back UK staycations, introducing a tax that would see 73% of people reduce or cut back on holidays in England risks undermining both consumer demand and regional growth.

The polling follows economic modelling by Oxford Economics, commissioned by UKHospitality, which found that a 5% holiday tax – the model being introduced in Edinburgh in July 2026 – would hit holidaymakers in England with a £1.6 billion tax rise, shrink GDP by £2.2 billion, cost 33,000 jobs, and leave the Treasury £688 million worse off in lost tax receipts by 2030.