Alliance stands with partners to support rural tourism amid tax change concerns

As the UK Budget approaches on Wednesday (30 October), the Countryside Alliance, in collaboration with key partners such as UK Hospitality, CLA, and the Tourism Alliance - led by The Professional Association of Self-Caterers UK - is championing the importance of rural tourism to ensure we have a thriving industry that secures the future of our countryside and coastal communities. Together, we are actively seeking assurances from HM Treasury that a thorough economic impact assessment has been conducted regarding the proposed abolition of the Furnished Holiday Lettings (FHL) tax regime. We have formally requested a copy of this assessment to understand both the direct and indirect impacts on rural communities and the broader economy.

Representing a substantial portion of the UK's tourism sector, the signatories of this letter are voicing serious concerns about the potential repercussions of these tax changes. The FHL regime is vital for the tourism sector, especially in rural and coastal areas where holiday rentals support local economies by creating jobs and increasing tourism spending. This sector is responsible for £9.4 billion in economic activity, supporting over 230,000 jobs, many of which are located in rural and coastal areas where such employment opportunities are vital. The FHL tax regime is a set of tax that offers specific tax benefits for properties let as short-term holiday accommodations. To qualify as an FHL, a property must meet certain criteria regarding how many days it’s available and let out each year, among other conditions.

Sarah Lee, Director of Policy at the Countryside Alliance, said:

"The holiday let sector provides essential bedrock for the broader tourism ecosystem. The government’s decision could significantly disrupt this sector, risking job losses and decreased spending in areas where tourism is a lifeline."

This sector not only supports local economies but aligns with the government’s vision for national renewal, contributing responsibly and sustainably. However, the combined impact of recent and proposed policy changes could jeopardise the future of rural tourism, leading to fewer employment opportunities and reduced tourism expenditure in areas that need it most.

The Countryside Alliance and its partners remain committed to advocating for policies that protect and nurture rural tourism. Ahead of the Budget, we continue to work with the Government, urging a thoughtful approach to ensure this sector can thrive for the benefit of all UK communities.

You can read the full letter here.