Andy Burnham just made a tone deaf decision — the UK’s seaside towns will pay

Andy Burnham certainly seems to be enjoying being the Prime Minister, and he has wasted no time in making new proposals. One of them announced last week is giving metro mayors the power to introduce a so-called “tourist tax” in their region — an extra charge paid by visitors on overnight stays. This seems counterproductive, to put it mildly. The hospitality sector is suffering greatly, as Mr Burnham has acknowledged by cutting business rates for pubs, clubs and live music venues by 20%.

Energy costs are rocketing and food and drink and drink cost an astronomical amount. The previous Chancellor, Rachel Reeves, thought it would be a brilliant idea to add an extra cost by increasing employers’ national insurance contributions and the minimum wage. This means businesses are already having to fork out more to hire people, and now they face the possibility of some families not being able to afford to stay at tourist destinations.

Sir Keir Starmer promised to stop what he called “sticking-plaster politics” when he became the Prime Minister two years ago.

But Labour’s economic strategy seems laced with short-termism as it desperately seeks to raise more money for the exchequer.

Imposing levy after levy naturally stems enterprise and ensures companies are less able to grow.

Creating favourable conditions for business will lead to more money for the Treasury in taxes that already exist, but heaven knows that today’s environment for firms is already stormy and vindictive.

Now it could be about to get worse. Mayors’ patches include seaside towns, which usually rely on visitors for income, a lot of them seasonal.

Of course, Labour mayors are more likely to use their new power — the tax will be capped at 5% — and places that are in areas administered by them include: Southport, New Brighton and West Kirby in the Liverpool City Region, and Tynemouth, Whitley Bay and South Shields in the North East.

So these are the areas that should brace themselves.

But we of course cannot rule out mayors from other parties introducing the tax in their areas — even though Tory and Reform leaders have pledged not to do so — as local authorities are starved of cash.

Other places away from the coast also rely on tourists.

UKHospitality has estimated the tax would cost the industry at least £1.6billion.

Steve Rotheram, the Mayor of the Liverpool City Region, is thrilled having called for the power for years.

Lord Khan is also happy.

Proponents claim that the cash raised will be reinvested directly into things like high streets and local infrastructure.

This sounds great, but we must also remember that public money is not created out of thin air — it is provided by successful businesses