Flaxton Meadows Campsite calls for government support

Jon Charters-Reid, owner of Flaxton Meadows Campsite near Strensall, said rising costs for cars, fuel, shopping and bills threatened to undermine the growing popularity of stays.

He added that the government could consider regaining VAT discounts and helping by reducing energy costs.

A government spokesperson said it is taking action to support small businesses, including retail, hospitality and leisure, including expanding business rate relief from April.

Following warnings from the outdoor holiday organization, domestic travel could fall to 28.8m by the end of the year, down 32% from 2022.

The Back British Holidays campaign launched by Out and About Live predicts Yorkshire and Humber can see 1.58 million visitors and lost £382 million in revenue.

Campaign spokesman Daniel Atwood said their findings should encourage action from the government to protect rural businesses, jobs and key UK holidays.

The call will be made as Prime Minister Rachel Reeves will provide updates on the national economy and government spending plans in a spring statement on Wednesday, March 26th.

York Campground owner Charters Reid told the local Democracy Reporting Service (LDRS) that it should consider reviving VAT discounts for holiday businesses introduced during the coronavirus pandemic.

VAT rates for hospitality and accommodation supply fell to 5% from 2020 to 2021 and to 12.5 until March 2022.

Charters Reed has added a visitor levy and added charges of staying in York overnight in recent months, risking taking off more tourists.

York councillors will discuss ways to move forward with them on Thursday, March 27th, with the council currently lacking the authority to collect tourism taxes.

The owner of the Holiday Park said: “Yorkshire is one of the UK's most diverse landscapes and one of the most preserved medieval cities in York in Europe, but rising costs risk putting off people.

“In the last five years, camping has become extremely expensive, with cars costing cars that can tow a caravan, and on average, a canvan and camper van cost around £76,000.

“It's before you leave and you have gas and diesel costs, so people are trying to cut their holiday costs as their bills have also gone up at home.

“So, if you want to bring a shopping bag with you, you are looking at £65.

“So if you're going to get tourism tax, in addition to being a cyanide pill for the industry, if you could cause more people and face a rapid decline.

“The stay in this country is huge now, but when I follow up with a client, they say it's cheaper to go abroad.

“We have our own costs after that. The campsites are very environmentally friendly. We and others have done everything we can to be more efficient, but the UK has the most expensive commercial energy in the world.

“The government should be doing something to encourage stays, and the industry needs their support.

“During the coronavirus pandemic, it will help the government cut VAT for holiday businesses to 5% and get back to something like that.

“Energy has also been a huge impact for us, so it will help.”

A spokesman for the Treasury ministry told LDRS that the government is committed to improving the business environment, including small and medium-sized businesses.

Government relief for hospitality companies includes a 40% relief for business rates starting in 2026, providing broader support through fair payment codes, support services and growth hubs.

The spokesman said: “We know the important importance of small businesses to the economy, and have already achieved a lot in the short term, including protecting the smallest companies from rising and late payments in employers, as well as imposing corporate taxes.

“We provided one Congressional budget to clean up the slate. Without our actions, the remedy for retail, hospitality and leisure business rates was completely over this April.

“We are now focused on creating opportunities for businesses to compete and access the finances they need to expand into new markets, export and intrude.”