Families are facing the risk of being priced out of domestic holidays due to a proposed ‘tourist tax’, as cautioned by government officials. This potential levy, suggested by the Labour party, would enable regional mayors in England to impose a “visitor levy” on overnight accommodations, similar to systems in place in various European countries. While the specifics of this levy are still under discussion, it could either be a per-person fee or a percentage of the total stay cost.
Critics argue that this levy could significantly impact families, potentially adding over £100 to a two-week summer holiday for a family of four. For instance, a family of six vacationing for four nights in Blackpool at £49 could see their expenses nearly double to £97. In response to these concerns, UKHospitality has sent a joint letter signed by 200 businesses to Chancellor Rachel Reeves, highlighting the potential adverse effects on small and large enterprises alike.
In other news, Zoopla’s latest research has unveiled the most budget-friendly property hotspots in the UK. Sunderland emerges as the most affordable city in England, where average monthly mortgage payments represent only 17% of the typical monthly salary. On the flip side, Havering in London stands out as the most affordable borough, with one or two-bedroom homes averaging £305,200, approximately 7.3 times the average earnings of £41,600 for single buyers in the area.
Meanwhile, Greene King, a prominent pub group, has announced plans to inaugurate 30 new franchise pubs this year. This initiative follows their successful establishment of 100 franchise Hive and Nest concept pubs. Greene King Pub Partners intends to expand its franchise operations into Wales and the Southwest of England by 2026, building on its growth momentum.
Additionally, there has been a decrease in the number of mortgage borrowers falling behind on repayments, according to data from UK Finance. Despite the ongoing financial challenges, the final quarter of 2025 saw a 4% reduction in home owner mortgages in arrears. This positive trend is attributed to several Bank of England interest rate cuts.
Moreover, the FTSE 100 has achieved a new record high in early trading, providing a boost to pension savers and investors. The index surpassed 10,500 points, with similar record-breaking trends observed in European markets. Notably, Schroders experienced a substantial increase following the approval of a nearly £10 billion takeover by US investment firm Nuveen.
In the retail sector, Côte Brasserie has rolled out a special offer for kids during half term, offering discounted meals alongside adult purchases. This initiative aligns with the ongoing trend of chains providing special deals during school breaks to attract families.
Lastly, Marks & Spencer has been recognized as the top in-store supermarket for customer satisfaction in a recent Which? survey. Customers lauded M&S for its quality, service, and overall shopping experience, despite the slightly higher prices compared to competitors. Tesco also performed well in the survey, tying for second place with Waitrose, while Asda and Morrisons ranked lowest for in-store shopping satisfaction.
The UK’s economic growth in the final quarter of 2025 was below expectations, with a 0.1% increase reported by the Office for National Statistics. However, the data also revealed an overall improvement in economic performance for the entire year, rising from 1.1% to 1.3%. Chancellor Rachel Reeves emphasized the government’s economic strategy, highlighting interest rate cuts, falling inflation rates, and the UK’s position as the fastest-growing G7 economy in Europe as indicators of a robust and expanding economy.