A potential ‘tourist tax’ proposed by the Labour party could make staycations unaffordable for families and negatively impact small businesses such as guesthouses and B&Bs, according to warnings issued to the government. The proposal involves allowing regional mayors in England to implement a “visitor levy” on overnight stays, a practice already in place in some European countries. The specific details of this levy, whether it would be a per-person charge or a percentage of the total stay cost, are yet to be finalized.
Critics argue that for a family of four on a two-week summer holiday, this tax could increase their expenses by over £100. In a scenario where a family of six stays in Blackpool for four nights at £49, they could see their costs nearly double to £97. Trade body UKHospitality, representing 200 businesses, both large and small, has expressed concerns about the potential adverse effects and has addressed them in a joint letter to Chancellor Rachel Reeves.
On a different note, Zoopla’s latest research has identified Sunderland as England’s most affordable city for single buyers, with average monthly mortgage payments amounting to just 17% of the typical monthly salary. The average price for a one or two-bedroom property in Sunderland is £106,700, while the average income for a single person stands at £28,600. In comparison, Havering in London was highlighted as the most affordable borough, with properties costing around £305,200 on average, equivalent to 7.3 times the average earnings of a single buyer.
In a separate development, Greene King has announced plans to open 30 new franchise pubs this year, expanding its franchise operations into Wales and the Southwest of England starting in 2026. The company recently achieved a milestone of 100 franchise Hive and Nest concept pubs and aims to further grow its presence in the market.
Furthermore, mortgage arrears among borrowers decreased in the final quarter of 2025, according to data from UK Finance, with 80,490 home owner mortgages in arrears, reflecting a 4% drop from the previous quarter. Despite the ongoing cost of living challenges, the decrease is attributed to several Bank of England interest rate cuts. Additionally, repossessions of mortgaged properties reduced to 1,210 in the final quarter of the year, significantly below the long-term average.
The FTSE 100 index reached a new record high in early trading, with a notable increase benefiting pension savers and investors. The index rose by approximately 34 points to over 10,500 by mid-morning, aligning with record highs seen in other European markets. The rise in the FTSE index was primarily driven by companies earning a significant portion of their revenue from overseas operations.
Côte Brasserie has introduced a special half-term offer for kids, where a two-course kids’ meal or kids’ breakfast can be availed for £1 with the purchase of a full-price adult main course or adult breakfast. This offer, applicable to children aged 12, is redeemable through the restaurant’s app and is part of a series of special deals announced by various chains for the half-term period.
In the retail landscape, Marks & Spencer has been recognized as the top in-store supermarket for customer satisfaction in a recent survey by Which?, with shoppers appreciating the quality, service, and overall store experience provided by M&S. Despite higher prices compared to competitors, customers expressed satisfaction with M&S. On the other hand, Asda and Morrisons were rated the lowest for in-store shopping, with both receiving a customer score of 68%.
Lastly, the UK economy saw a modest growth of 0.1% in the final quarter of the previous year, falling short of the 0.2% growth predicted by experts. However, the economy’s annual growth rate increased from 1.1% to 1.3% in 2025. Chancellor Rachel Reeves highlighted the government’s economic strategy, emphasizing multiple interest rate cuts, declining inflation, and the UK’s status as the fastest-growing G7 economy in Europe as indicators of a strong and stable economic framework.