Tourism tax branded ‘bonkers’
CONTROVERSIAL plans to levy a tourism tax in Birmingham, including a hotel tax, airport levy and workspace parking levy, have been dubbed ‘bonkers’
Birmingham City Council has revealed it will need to borrow £50 million in order to pay for the Commonwealth Games – a figure it will be paying off for the next 40 years.
The new taxes would help to pay for the Games in 2022.
The council and its partners are expected to pay for 25 per cent of the Games costs – approximately £145 million – with the Government providing the remainder of the funding.
A further £19 million will be coming from corporate capital resources, meaning the remainder – a potential £80 million – will need to come from the city council.
Papers show that the council plans to borrow £50 million to help meet the costs, while possibilities for the remaining £30 million – including the proposed tourism taxes and contributions from other councils and universities – are still being explored.
But Tory councillor Meirion Jenkins said plans to introduce further taxes to Birmingham to pay for the Games were ‘bonkers’.
“If we are seriously talking about funding these Games by adding to taxes in the city, then I think we’ve gone stark raving bonkers,” he said.
Meanwhile, the fact no long-term tenant has yet been announced for the Alexander Stadium after the Games means it risks becoming a ‘white elephant’, it was claimed.
Cllr Paul Tilsley (Lib Dem) expressed concern about the future of the stadium, which is set for a £70 million investment to transform it from its current capacity of 12,700 to 40,000.
As yet no long-term use has been identified for the stadium post-Games, though organisers say that discussions are ongoing.
But Cllr Tilsley says the lack of a plan at this point in preparations lead him to wonder whether the stadium will become a ‘white elephant’
after the Games.